Perodua and Daihatsu to invest RM600 million in new engine plant


Published on May 29th, 2014 | by Daniel Sherman Fernandez


Perodua and Daihatsu to invest RM600 million in new engine plant


Perodua and Daihatsu Motor Company of Japan are further increasing their investment in Malaysia with the establishment of a new engine manufacturing plant in Sendayan, Negeri Sembilan. Both companies will invest about RM600 million to construct the new engine manufacturing plant. Construction is expected to begin in September this year. The new engine manufacturing company will see Daihatsu holding 51%, while Perodua the remaining 49% with a paid up capital of RM165 million.

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“This new investment is part and parcel of our transformation plan to become a globally competitive company in terms of quality, cost and delivery and is an important component to enhance the power train eco-system in the automotive industry,” Perodua President and Chief Executive Officer Datuk Aminar Rashid Salleh said.

“In anticipation of intensifying global competition in the future, Daihatsu is working on structural transformation of its local operations in Malaysia, which it has determined as a key base for its overseas business,” Daihatsu said in a statement.

“The entire Daihatsu Group will powerfully push forward with structural transformation concerning manufacturing operations for vehicles, including automatic transmission and engines, in order to speed up the strengthening of international competitiveness,” it added.


The new engine plant, which will employ an initial 150 new workers, will have a land area of 142,000 metre/square, a plant area of 19,000 metre/ square and a production capacity of 140,000 units a year. Its core businesses include the manufacturing and sale of automotive engines as well as the development, design, manufacturing of engine parts and equipment. This is the second investment Daihatsu has made in Sendayan, the first is the construction of an Electronic Automatic Transmission plant, named Akashi Kikai Industry Malaysia Sdn Bhd, which began operations in March this year. Perodua has 10% equity in this venture.

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