Yesterday, Proton announced the restructuring of its Advance Vehicle Engineering Global (AVEE Global) body parts and tooling subsidiary. Under a new agreement Thai-based but Malaysian-owned automotive parts supplier, Aapico Hitech, the latter has acquired a 60 percent of AVEE Global.

The RM 140 miilion joint venture will see initial investment of RM 40 million, with another RM 100 million investment planned in 2024. Crucially, teh latter will fund a new body production line to cater for new Proton models, beyond 2024.

Also read: Thailand-based Aapico Hitech acquires 60 % of Proton's Advance Vehicle Engineering Global manufacturing subsidiary

Besides a new 'hot-stamping' body production line, cash investment will also go towards new machinery and other plant extensions at AVEE's current 20-acre facility in Tanjung Malim.

During the press event yesterday, the President & CEO of Aapico Hitech Mr. Yeap Swee Chuan said, “Proton’s AVEE Global is already at full capacity today. Proton is growing strongly and the demand for hot-stamping for other models is necessary. That’s why we need to expand. That 100 million is for a new hot-stamping line.”

Also read: New engines coming for Proton Persona, Iriz, Exora, maybe Saga too - between 2023 to 2027

Chiming in, the CEO of Proton, Dr. Li Chunrong said, “Only AVEE Global is capable of HPF (Hot-Press Forming). For the upcoming launch of SS11, we need more HPF. This is why we need more expansion of the line.”

The SS11 refers to the model code of Proton’s upcoming C-Segment sedan – commonly called the Proton S50 – which has been spotted numerous times on public roads, leading to conjecture that the official model introduction isn’t far away.

Also read: Will Malaysia get the 1.5 NA or turbo? Proton S50 (or S70?) seen in the wild as we get closer to its launch date

Beyond the introduction of new models. The planned plant expansion will also cater for Proton’s growing export business. In 2022, Proton exported a total of 5,406 units and is targeting 10,000 units in 2023.

Speaking on the subject, Deputy CEO Mr. Roslan Abdullah said Proton's export volumes are curtailed not due to demand, but poorer economic outlook in certain markets.

“There are some markets that are affected not because of demand, but because of the economy and other market disruptions. However, the demand is still there,” said Roslan.

Mr Roslan further added that with its growing export business, Proton can further leverage Aapico’s global supply chain to ensure parts are supplied as needed to Proton’s new markets.

“Even if we cannot get the cars there. Together with Aapico, we can make sure the parts (for maintenance and repairs) will be there.”