Malaysia’s Perodua spends $ 257 m to boost car manufacturing

Monday, 31 December 2012 00:00 - - {{hitsCtrl.values.hits}}

KUALA LUMPUR (Reuters): Malaysia’s second largest carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua) will invest 790 million ringgit ($ 257.52 million) to build a second manufacturing plant to boost production by 50 per cent.

The new plant, situated near to Perodua’s existing facility in central Selangor state, will grow annual production to 300,000 vehicles, the company said in a statement on Thursday.

Perodua’s Chief Executive Aminar Rashid said the move was part of a five-year plan to cut costs and improve productivity as competition heats up and the government relaxes rules on imports of foreign car brands.

Perodua, which counts Japan’s Daihatsu Motor Co Ltd., MBM Resources Bhd and UMW Holdings Bhd among its shareholders, makes low priced compact cars.

The announcement comes two weeks after national automaker Proton Holdings Bhd said it will buy engine technologies developed by state-owned oil firm Petronas for 63 million ringgit in a bid to broaden its product range.