Chinese tyre manufacturer Wanli Tire plans to construct a tyre manufacturing plant in Selangor, Malaysia, in a tie-up with Malaysian property giant Berjaya Group.
The planned tyre manufacturing plant will be in Hulu Selangor, and this will be Wanli’s second overseas plant after its manufacturing site in Cambodia. The investment by Wanli Tire is estimated at around RM1.37 billion, and the plant is planned with a production capacity of 6.2 million tyres/year.
It is expected to create 1,350 local jobs for production line positions as well as high-value roles for engineers, quality specialists and managers.
Wanli Tire will enter the business in Malaysia through its unit, Hong Kong-based Trusmax Investment, which has entered into a joint venture agreement with Alam Baidur Sdn Bhd (ABSB), a wholly-owned unit of Berjaya Property.
ABSB will own 30% of the proposed joint venture (JV) while the remainder 70% will be held by Trusmax. ABSB will inject a parcel of freehold land measuring about 67.90 acres at an agreed value of RM118.31 million into the JV.
The joint venture company will undertake R&D, design, manufacture and sale of automotive tyres, related spare parts and components, as well as to provide aftersales services in Malaysia.
“The total funding required by JVC for setting up the automotive tyre manufacturing plant is estimated at about RM1.3 billion. Of this, RM813.35 million will be funded through equity contributions by Alam Baiduri and Trusmax, while the remaining RM491.45 million will be financed through borrowings,” according to a report by NST.
The announcement follows hot on the heels of another Chinese firm, Prinx Chengshan Tire, which also plans to invest RM2.6 billion over 15 years to build a tyre manufacturing plant Kedah Rubber City (KRC), Kedah, the first phase of which is expected to start up this year.