KUALA LUMPUR (Oct 9): EP Manufacturing Bhd (KL:EPMB) has formed a joint venture (JV) with Beijing-listed Hebei Shichang Auto Parts Co Ltd to invest RM100 million in a new fuel tank manufacturing facility in Selangor to supply Proton Holdings Bhd, as the automaker expands production and deepens local sourcing.

In a bourse filing on Friday, the automotive solutions provider said its wholly-owned subsidiary Fundwin Sdn Bhd had signed a JV agreement with Hebei Shichang to establish EP Shichang Automotive Systems Sdn Bhd. EP Manufacturing will hold a 51% stake in the venture, with Hebei Shichang owning the remaining 49%.

The partners will develop a plastic fuel tank production facility at EP Manufacturing’s manufacturing hub in Batang Kali, Selangor, under the first phase of the project. The plant will have an annual production capacity of 200,000 units and is scheduled to begin supplying Proton’s Tanjung Malim facility in March 2027.

The venture is aimed at supporting Proton’s expansion plans and strengthening Malaysia’s automotive supply chain through greater localisation, while bolstering the country’s ambitions to become a regional automotive manufacturing and export hub, EP Manufacturing said.

Under the JV, Fundwin will oversee local operations, including financing arrangements, government and industry relations, and compliance with Malaysian laws and regulations. Hebei Shichang will contribute technical expertise, manufacturing processes, testing and quality-control capabilities, as well as operational support and training for technical personnel.

The partners will also explore the development and localisation of other automotive components, including thermal coolant tanks for new energy vehicles.

The JV agreement will run for 30 years, with the option for both parties to mutually agree to an extension.

The venture’s board will comprise up to five directors, with Fundwin entitled to appoint three and Hebei Shichang two. Fundwin’s executive chairman will serve as chairman of the board.

EP Manufacturing shares closed unchanged at 47 sen on Friday, valuing the company at RM133.19 million. The stock has declined 6% so far this year.