KUALA LUMPUR (June 16): EP Manufacturing Bhd (KL:EPMB), an automotive components and vehicle assembly firm, is expanding its footprint with a RM200 million investment to build a new vehicle painting facility in Pegoh, Melaka.
Vehicle painting is among the most capital-intensive and value-added processes in automotive manufacturing, according to group executive chairman Hamidon Abdullah, as it is a critical process that increases local industrial participation and retains more value-added activities within the country.
"The facility is designed with a line speed of 15 jobs per hour and an annual capacity of approximately 30,000 vehicle bodies operating on extended production shifts," Hamidon said in his speech during the groundbreaking ceremony on Monday.
The facility is expected to be completed next year, with commercial operations targeted by June 30, 2027. The facility currently assembles a wide range of vehicle categories, including sedans, sport utility vehicles (SUVs), multi-purpose vehicles (MPVs) and four-wheel-drive models.
It also supports multiple powertrain technologies, ranging from traditional internal combustion engine (ICE) vehicles to hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).
According to Hamidon, the addition of vehicle painting capabilities will allow EPMB to offer more comprehensive completely knocked down (CKD) manufacturing that combines component localisation, vehicle assembly and painting operations under one roof.
"It allows a greater portion of manufacturing value to remain within Malaysia while providing our OEM (original equipment manufacturer) partners with a stronger and more integrated manufacturing base," he said.
The investment also comes as EPMB continues to deepen its involvement in Malaysia's automotive industry, particularly through partnerships with Chinese automotive brands seeking to establish a local manufacturing presence.
The company first entered into a vehicle assembly partnership with Great Wall Motor (GWM) in 2023. At the time, EPMB operated on approximately 40 acres of freehold land in Pegoh.
Since then, the group's automotive manufacturing footprint has expanded to about 58 acres, with current collaborations including several international automakers like GWM, BAIC, SAIC Motor's MG brand and XPeng.
Shares of EPMB closed half a sen or 1.1% higher at 45.5 sen on Tuesday, giving the company a market capitalisation of RM131.7 million. The stock has declined about 9% year to date.