EP Manufacturing, Hebei Shichang form RM100m auto parts JV

EP Manufacturing Bhd confirmed Oct. 11, 2026, that it has formed a 100 million ringgit ($23 million) joint venture with China's Hebei Shichang Auto Parts Co Ltd to build an automotive components plant in Selangor.

The facility will produce plastic fuel tanks for Malaysian national automaker Proton Holdings Bhd. The investment targets an annual output of 200,000 units during its initial operational phase.

The agreement pairs EP Manufacturing's wholly owned subsidiary Fundwin Sdn Bhd with Hebei Shichang, an automotive supplier listed on the Beijing Stock Exchange. Fundwin holds a 51% controlling interest in the venture, with Hebei Shichang holding 49%.

The operating entity, named EP Shichang Automotive Systems Sdn Bhd, will operate from EP Manufacturing's industrial manufacturing complex in Batang Kali, Selangor. Initial paid-up share capital is set at 10 million ringgit ($2.3 million).

Fundwin will inject an initial 2.5 million ringgit ($580,000) to secure local manufacturing licenses, the company said. Hebei Shichang will subscribe to its 49% equity stake through an offshore subsidiary registered in Hong Kong.

Proton will use the components at its main vehicle assembly facility in Tanjung Malim, Perak. Production line deliveries from Batang Kali are scheduled to begin in March 2027, according to the regulatory filing.

The manufacturing lines will support Proton's Advanced Modular Architecture platform, known as AMA. Initial output is designated for the Proton Saga MC3 subcompact sedan, internally designated AMA01, alongside the upcoming Saga Cross crossover variant.

EP Manufacturing has operated as an automotive tier-one supplier to Proton for roughly four decades. The company supplies structural stampings, body panels and modular chassis assemblies across Proton's vehicle range.

Hebei Shichang will supply plastic blow-molding tooling, testing systems and production engineering. The Chinese partner also provides technician training for local manufacturing personnel, the company filing said.

Fundwin will supervise domestic factory operations, statutory compliance and local regulatory affairs. Fundwin holds the right to nominate three directors to the venture's five-member board, while Hebei Shichang will appoint two.

The agreement will remain in force for an initial term of 30 years from Oct. 9, 2026. The contract allows both partners to extend operations beyond 2056 through written mutual consent.

The partnership establishes a second product line to develop thermal coolant tanks for electrified vehicles. Those components will target hybrid and battery-electric models assembled in Malaysia and Southeast Asian regional markets.

Proton is 49.9% owned by China's Zhejiang Geely Holding Group and 50.1% by Malaysian industrial conglomerate DRB-HICOM Bhd. Geely took its minority ownership stake in 2017 to modernize Proton's product architecture.

Geely has shifted several Chinese automotive component suppliers into the Tanjung Malim industrial corridor. The hub aims to deepen domestic supply integration and expand completely knocked-down vehicle assembly.

Establishing manufacturing in Selangor allows Chinese automotive component makers to satisfy local sourcing mandates. Malaysia's National Automotive Policy links industrial excise tax incentives to domestic value addition.

Assembling fuel modules inside Malaysia also helps vehicles meet regional trade origin thresholds. The ASEAN Trade in Goods Agreement requires a 40% regional value content threshold to qualify for zero-tariff cross-border vehicle exports across Southeast Asia.

Shipping pre-assembled modules from mainland China incurs maritime freight costs and regional import duties. Local plastic blow-molding eliminates long-distance transport costs on hollow, low-density parts.

Chinese auto component suppliers face slowing vehicle sales and aggressive pricing pressure in their domestic market. Establishing manufacturing entities across Southeast Asia provides Chinese suppliers direct access to foreign production programs.

EP Manufacturing also operates contract vehicle assembly plants in Melaka. Those assembly lines build sport utility vehicles and commercial trucks for Chinese original equipment manufacturers, including Great Wall Motor and BAIC Motor.

The filing does not state whether a formal groundbreaking ceremony took place at the Batang Kali industrial site, and neither company published a factory construction completion deadline.

Hebei Shichang's equity injection remains subject to foreign direct investment regulatory clearance from Chinese commerce and foreign exchange authorities.

EP Shichang Automotive Systems will incorporate its commercial entity in Kuala Lumpur ahead of tool installation scheduled for late 2026. Commercial component shipments to Proton's Tanjung Malim assembly plant remain on track for March 2027.