RM500 million Daihatsu Perodua Engine Manufacturing Plant officially opens

08 Nov 2016

Sendayan, 8 Nov: Daihatsu Motor Co. Ltd., and Perodua’s latest RM500 million investment joint venture, the Daihatsu Perodua Engine Manufacturing Sdn Bhd (DPEM) was officially opened here today, signifying a new era of engine manufacturing capabilities for both organisations in the country.

The engine manufacturing facility is the second significant investment made by Daihatsu in Sendayan after building a transmission plant, Akashi Kikai Industry (M) Sdn Bhd, adjacent to the facility with the objective of setting up a powertrain production hub in the country.

“With both DPEM and Akashi Kikai now online, we are able to offer a comprehensive engine component solution to other (automotive) original equipment manufacturers (OEM),” DPEM Chairman, YBhg Tan Sri Asmat Kamaludin said.

The plant was launched by the Negeri Sembilan Chief Minister YAB Dato’ Seri Utama Haji Mohamad Haji Hasan at a simple ceremony at the DPEM plant here today. 

Also present was Perodua President & CEO, YBhg Datuk (Dr) Aminar Rashid Salleh, Executive Vice President of Daihatsu Co. Ltd, Mr Hiroyuki Yokoyama and Managing Director of DPEM Sdn Bhd, Mr Koji Miyake.Asmat said so far, both DPEM secured two (2) OEMs for its products and is currently looking for more manufacturers to supply engine components to.

Akashi Kikai was launched in July 2015 and provides Perodua with Electronic Automatic Transmission as well as manual transmission for the Axia and Bezza; while DPEM, which began operations in May this year supply engine components for the Bezza.

Asmat said that DPEM and Akashi Kikai were established to reap the opportunities arising from a fully liberalised automotive market by offering high quality engine components at competitive prices.

“With full liberalisation of the automotive industry imminent; it makes sense to tap into the potential for growth within the ASEAN region where most of the economies located here are looking to flourish over the next few decades.

“For now, we are focused in making the right first steps; of preparation and improvements and hopefully we will see the returns in a relatively acceptable timeframe,” he said.

In his opening speech, Dato’ Seri Utama Haji Mohamad said the initiative to attract investors is greatly welcome as the capital injected in this location would have a multiplier effect to the state as it will also promote an economic eco-system on its own.

“This investment came just in time as the government – both on state level and federal level – is looking to further diversify the country’s income: in line with the right honourable Prime Minister’s call to reduce dependency on oil industry.

“The best option is to move towards attracting companies that offer cutting edge technology which will ultimately give added value to the economy,” he said.

The engine plant has a land area of 35 acres, a plant area of 5 acres with consist of 202 workers, complete with facilities such as prayer room, canteen, locker rooms and hostel for those who are required.