DRB-Hicom in-direct tie up with China’s XQ to manufacture components for vehicles
KUALA LUMPUR, Jan 29 — HICOM-Teck See Manufacturing Malaysia Sdn Bhd (HTS) has entered into a share-holders agreement (SA) with Jiangsu Xinquan Automotive Trim Co Ltd (XQ) to form a joint venture company in Malaysia to design, develop and manufacture instrument panel, floor console and door trims and related components for vehicles.
HTS is a 51 per cent-owned subsidiary company of Hicom Holdings Bhd which in turn is a wholly-owned subsidiary company of DRB-Hicom.
“Via the participation of HTS in the joint-venture company (JVCO) the DRB-HICOM Group will be able to continue supporting PROTON’s business which includes expansion into the Asean market.
“JVCO is also targeting to penetrate the Asean market with products manufactured using new technology,” DRB-HICOM said in a filing with Bursa Malaysia today.
Proton Holdings is a 50.1 per cent-owned subsidiary of DRB-Hicom.
Upon receipt of the relevant approvals from the Chinese government for overseas investment, XQ would assign its rights and obligations under the SA to Xinquan Development Hong Kong Ltd (XQ HK), a wholly-owned subsidiary to be incorporated in Hong Kong.
The proposed name for the JVCO is XINQUAN-HICOM Malaysia Sdn Bhd.
HTS would have a shareholding of 49 per cent with a proposed capital contribution of RM31.556 million while XQ HK (51 per cent) would have a proposed capital contribution of RM64.4 million in the JVCO.
The proposed joint venture would be for a tenure of ten years and renewed automatically for an additional ten years unless both shareholders agree to non-renewal within one year prior to the date of the tenth anniversary of the establishment date of the JVCO. — Bernama
