PETALING JAYA: EP Manufacturing Bhd (EPMB), a Malaysian automotive solutions provider, has formed a joint venture with Chinese fuel systems company Hebei Shichang Auto Parts Co Ltd for a manufacturing facility focused on advanced fuel tanks for Proton, involving a total investment of RM100 million.
The joint venture will support Proton’s expansion initiatives and contribute to the development of a highly localised component supply chain in Malaysia, supporting the country’s ambitions to become a leading regional centre for automotive production and exports.
Listed on the Beijing Stock Exchange, Hebei Shichang specialises in the research, development and production of plastic fuel-tank systems. Its customers include major Chinese automakers Geely, Chery, BYD, SAIC, FAW, Changan and BAIC. The company has a market capitalisation of 11.75 billion yuan (RM7.1 billion.)
Following the signing of an agreement between EPMB and Hebei Shichang on Friday, EP Shichang Automotive Systems Sdn Bhd will be set up to undertake the joint venture, with 51% owned by EPMB and 49% by Hebei Shichang.
Under Phase 1 of the joint venture, EPMB and Hebei Shichang will develop a production facility to build plastic fuel tanks at the Malaysian company’s manufacturing hub at Batang Kali, Selangor, with production capacity of 200,000 units annually.
Following the completion of the facility, it will begin supplying fuel tanks to Proton Tanjung Malim in March 2027.
On Friday, EPMB held a ceremony to mark the signing of the joint venture agreement, witnessed by Proton deputy CEO Datuk Abdul Rashid Musa, Hebei Shichang vice-president Gao Yongqiang, and EPMB executive chairman Hamidon Abdullah.
EPMB general manager (business development) Mohd Seth Sulaiman, said: “As a partner of Proton for nearly 40 years, we are thrilled to witness the success of the Advanced Modular Architecture (AMA) platform rollout. Our strategic joint venture with Hebei Shichang will enable us to support Proton as it expands AMA and reaches even greater heights — both locally and internationally.”
He added that plastic fuel tanks are a highly technical product, critical to vehicle performance and safety. These are components that need to withstand high pressure, using multilayer plastic construction to meet demands of technology, safety and performance.
Abdul Rashid said, “As we continue to transition EPMB towards the manufacturing of more advanced, better margin products, we see the manufacturing of plastic fuel tanks as a potentially significant revenue driver for the Group, similar to our automotive seat business.
“Our JV with Hebei Shichang will deliver a major upgrade to our existing fuel-tank manufacturing capabilities, to a more advanced technology that meets Proton-Geely’s requirements for domestic and export markets. By combining Hebei Shichang’s Chinese technological expertise with our manufacturing and supply-chain capabilities, we are confident in achieving our goals in terms of technology renewal, manufacturing capability and long-term relevance.”
He said they believe the collaboration will drive a significant transformation within their component business and contribute to the development of a highly localised component supply chain in Malaysia.
