KUALA LUMPUR (Nov 4): MCE Holdings Bhd (KL:MCEHLDG), a manufacturer of automotive electronic and mechatronic parts, is partnering with Nanjing Chuhang Technology Co Ltd to exclusively develop, manufacture and market a sensing radar technology for autonomous driving application for global markets, excluding China.
The technology, known as automotive millimeter-wave (mmWave) radar, uses short wavelength electromagnetic waves to measure relative distance and current velocity of an object. Essential for advanced driver assistance systems (ADAS) and automated driving applications, it enables vehicles to detect and respond to their surroundings with precision and reliability, according to MCE.
Under the memorandum of understanding signed between MCE's wholly-owned MCE Ventures Sdn Bhd and the China-based company, the two parties will form a new company, with Chuhang bringing in its technical expertise — including technology transfer, product development support and assistance in establishing a production line in Malaysia — while MCE will establish a manufacturing facility at its upcoming MCE Auto Hub in Serendah, set to be operational by the second half of next year.
"This venture marks another milestone in our efforts to provide a comprehensive range of technologically sophisticated products that cater to the growing demands of local and overseas markets, while benefiting from Chuhang’s expertise in cutting-edge radar technologies,” said MCE group managing director Dr Goh Kar Chun in a media release on Monday.
Goh told The Edge Weekly in an interview earlier last month that phase one of the new plant in Serendah, once completed, will more than double MCE's current production capacity.
Upon full completion by 2035, the Serendah plant is expected to rake in annual revenue of RM500 million, while MCE’s existing two plants in Johor Bahru (Johor) and Klang (Selangor) are forecast to contribute RM200 million.
MCE’s product portfolio includes anti-theft keyless entry systems, plastic parts, interior and exterior lamps, functional switches, power window regulators, camera systems and digital video recorders (DVRs), and parking sensor systems.
At market close on Monday, shares in MCE were unchanged at RM1.60, valuing the company at RM197.73 million.
The stock hit a high of RM1.97 back in May after Brahmal Vasudevan, of private equity firm Creador, became its newest substantial shareholder. Year-to-date, there has been little change to MCE's share price, gaining just four sen or 2.56%.