Auto Parts Holdings Sdn Bhd (APM) have signed a Joint Venture Agreement with Delta Kogyo Co., Ltd. (Delta) to carry out the business of developing, manufacturing, assembling and sale of car seating system for Mazda cars including their Mazda CX-5 and other Mazda models in Malaysia.
This JV Agreement between APM and Delta will see both companies form a newly incorporated Malaysian company under the proposed name of APM Delta Seating Systems Sdn Bhd (JV Co) with an authorized capital of RM25,000,000.00 divided into 25,000,000 ordinary shares of RM1.00 each. The issued and paid-up capital of RM23,000,000.00 will see APM owning 60% and Delta owning 40% of equity interests.
Delta, a Japanese corporation, is one of APM Group’s technical partners in Malaysia for over 4 years. This new business agreement will further enhance and strengthen the partnerships of both companies as they will be able to leverage on their combined knowledge and experience to bring greater synergy in their expertise and know-how in the design, development, manufacture, assembly and sales of automotive seats.
In view of the forecasted growth in the automotive sector of up-coming emerging markets in the ASEAN region, the JV Co may supply Completely Knocked Down seats, seat frames and components in the various ASEAN countries by means of export. Additionally, the JV Co will also be supplying components used in the seating systems for Mazda vehicles in Malaysia that may be exported into the ASEAN region as Complete Built Up units.
The production plant for this JV will be located in Kulim, Kedah with a built up area of 12,856 sqm. It is estimated to be completed in February 2017.
This JV, initiated through a program by Mazda and the Malaysia Automotive Institute (MAI) 4 years ago, is in support of Malaysia’s Northern Corridor Economic Region direction to boost the economic growth in the Northern Peninsular Malaysia.
Auto Parts Holdings Sdn Bhd, a wholly-owned subsidiary of APM Automotive Holdings Berhad that is a public listed company on Bursa Malaysia’s Main Board focuses on design, manufacture and sales of automotive components and systems. APM Group started off as a small Malaysian-centric automotive parts manufacturer before expanding into becoming a regional supplier and expanding globally. APM Group has operations in Malaysia, Vietnam, Australia, Indonesia, USA, Thailand and Netherland. APM and its subsidiaries have achieved QS9000, ISO14001 and TS16949 certifications as well as awards from their various automotive customers.
Delta Kogyo Co., Ltd. is a manufacturer of seat assembly, slide adjuster, recliner, height adjuster, shifter, sun visor and door checkers, is based in Japan. Delta Kogyo has operations in China, Thailand, Myanmar North America and Mexico. Delta Kogyo has achieved ISO9001, 1SO 14001 and ISO/TS16949 certifications as well as various awards.