Malaysian conglomerate DRB-Hicom has inked master collaboration agreement (MCA) with Chinese automaker Zhejiang Geely Holdings Group for the development of the Automotive High-Technology Valley (AHTV) project in Malaysia.
DRB-Hicom said in a statement that the MCA sets forth the underlying principles, governance framework and mutual commitment of the AHTV project in Tanjong Malim, State of Perak, including specific roles to be undertaken for development and promotional initiatives.
AHTV will be a next generation international vehicle hub in Tanjong Malim covering extensive automotive and mobility solutions across the value chain, from a full fledge high technology global research and development center, to world-class automotive original equipment manufacturers (OEMs) players, manufacturing cluster as well as supporting services and associated ecosystem including logistics, research university, training and learning institutions within a smart city.
The signing of the MCA brings the collaboration between DRB-HICOM and Geely Holding to the next stage.
It is a key milestone in the collaboration as it provides a formal engagement platform for Parties towards achieving the AHTV intended and agreed objectives.
The agreement sets forth the underlying principles, governance framework and mutual commitment of the AHTV project, including specific roles to be undertaken by Parties for its development and promotional initiatives.
This latest development follows the signing of the heads of agreement (HOA) by DRB-Hicom and Geely Holding earlier this year at the Malaysia-China Business Forum in Beijing.
Geely Holding’s strategically invested Zhejiang Geespace Technology Co. Ltd. (Geespace) has also signed HOA with Malaysian digital player Altel Communications Sdn. Bhd. (Altel) to focuses on the development and implementation of high technology systems and will expedite the deployment of innovative solutions within sectors like smart ports.
According to the statement, AHTV will attract investments both locally and from overseas which will propel it to become an international automotive hub for new energy vehicle (NEV).
Its focus will not only be on the production of automobiles of various makes, but also in the manufacturing of high-technology components and parts for NEVs.
This will further expand the capability of local vendors towards specializing in high technology manufacturing.
Other than promoting the cooperation of new energy vehicles, DRB-Hicom and Geely also plan to construct of the auto-components industrial park; promote the development of the new automotive industrial city; and any other initiatives relating to AHTV.
DRB-Hicom is one of Malaysia’s group of companies with core businesses in the automotive, aerospace and defence, banking, postal, services, and property sectors.
In the automotive sector, DRB-Hicom is involved in the manufacturing, assembly and distribution of passenger and commercial vehicles, including the national motorcycle.
Malaysia’s DRB-Hicom partners China’s Geely to develop Automotive High-Tech Valley in Malaysia