KUALA LUMPUR (Jan 3): EP Manufacturing Bhd (EPMB) announced that its subsidiary PEPS-JV (Melaka) Sdn Bhd (PJVM) has been appointed as the contract vehicle assembler for the Malaysian unit of China's Great Wall Motor Co Ltd (GWM), making it a key player in the assembly and production of selected GWM models in Malaysia for the next eight years.

As part of the vehicle assembly agreement signed on Wednesday by both parties, EPMB will initially focus on assembling and producing the Haval H6, a mid-size sports utility vehicle (SUV) model, and the Haval Jolion, a compact SUV model.

"From the group's perspective, the decision to venture into car assembly reflects EPMB's steadfast commitment to vertically integrate our operation. This strategic move presents a prime opportunity to expand our revenue streams and broaden our business portfolio," EPMB group chief executive officer Ahmad Razlan Mohamed said in a statement.

"Moreover, our involvement in GWM's inaugural CKD (completely knocked down) project in Asean demonstrates our agility and ability to adapt to global automotive market demand. This expansion reinforces EPMB's dedication to innovation, customer satisfaction, and our continual pursuit of excellence in the dynamic automotive industry," he added.

The assembly and production activities will be centred at the group's automotive manufacturing facility located at the Hicom Pegoh Industrial Park in Melaka. EPMB aims to achieve an annual output of 20,000 units by 2028.

Besides GWM, the Hicom Pegoh Industrial Park will also be utilised to cater to the production of Beijing Automotive Group Co Ltd (BAIC) vehicles.

In August 2023, EPMB signed a memorandum of understanding with BAIC International, paving the way for local production of BAIC's BJ40P and X55II SUVs, right-hand drive internal combustion engine vehicles and electric vehicles.

EPMB shares closed up one sen, or 1.32%, to 77 sen per share on Wednesday, with a market capitalisation of RM168.5 million.