The strategic joint venture – Purem AAPICO opens 2 plants for clean exhaust systems in Malaysia and Thailand

After signing a joint venture agreement on August 10, 2022, the strategic partnership – Purem by Eberspaecher and AAPICO Hitech is committed the business plan with a construction of new facilities to produce the exhaust systems in Malaysia and Thailand. Two new plants have already kicked the start of production to reach a full capacity.

Purem AAPICO is a joint venture with a stake between 51% and 49% respectively. Purem is specialist in a high technology of clean & quiet exhaust systems in line with global standards and low emissions while AAPICO has its know-how in Asean automotive industry for long decades and performs as the leading supply chain for world-class carmakers in Thailand and Malaysia. The company is ready to catch up a growth in all car platforms such as internal combustion engine, new energy vehicle and electric vehicle.

Purem AAPICO in Rawang, Selangor, Malaysia

Under the entitle of Purem AAPICO SDN BHD, the facility has begun a production since October 10, 2023 in Rawang, Selangor, spanning 4,000 square meters far from Kuala Lumpur with a 20-km northwest and near Pataling Jaya – another business center outside the Malaysian capital city. The plant makes exhaust gas aftertreatment systems, including hot ends and cold ends forms. The state-of-the-art technology can produce 400,000 units annually, hiring 100 local jobs.

The clean & quiet exhaust system from Purem AAPICO will be delivered to 4 different car models directly to a Malaysian automotive manufacturer and planned to serve other local customers as well as technical expansion of the production facility for catalysts, manifolds, mufflers and pipes of hot ends and cold ends in the future.

The grand opening of Purem AAPICO
Purem AAPICO Plant in Rawang, Selangor, Malaysia – the first location in Asean.
The grand opening of Purem AAPICO
High-ranking executives from Purem by Eberspaecher and AAPICO Hitech to join the grand opening ceremony.
The grand opening of Purem AAPICO
Employees of Purem AAPICO at the new plant in Malaysia.

Purem AAPICO at Amata City Industrial Estate, Rayong, Thailand

For the plant in Thailand, it has a start of production since October 12, 2023 – just 2 days after the facility opening in Malaysia. The plant is in Amata City Industrial Estate in Rayong, spanning 3,000 square meters near Bangkok and the Leam Chabang Port, surrounded by global facilities of automakers from Japan, US and Germany. The construction timeframe was less than 5 months with a production capacity of 300,000 units per year to employ 150 people and serve the exhaust systems passenger cars and pickup trucks.

The exhaust systems by Purem AAPICO meet the international standards of clean mobility such Euro6, CARB – LEV III and EPA – TIER 3, so Thai-made vehicles can be exported over 100 countries worldwide and the country is the leading hub of car production in the region, so called the Detroit of Asia.

The grand opening of Purem AAPICO
Purem AAPICO Plant in Amata City Industrial Estate, Rayong – the second location in Asean.
The grand opening of Purem AAPICO
The strategic partnership of Purem by Eberspaecher and AAPICO Hitech to make their significant milestones in Asean.
The grand opening of Purem AAPICO
Employees of Purem AAPICO at the new plant in Thailand.

Martin Peters, Managing Partner of the Eberspaecher Group said this is an important milestone for our business activities in the Asean market and it demonstrates that Purem’s products and technologies for clean mobility are well sought and the partnership with AAPICO Hitech about the know-how auto parts background will brought the joint venture to be stronger in the region.

Purem by Eberspaecher is growing and developing for clean automotive around the globe. “With the two new sites that the joint venture opened in Malaysia and Thailand within a week, Purem can manufacture the products now in 19 countries. This shows how the company’s footprint for clean mobility is constantly expanding”, Martin Peters added.

Mr. Yeap Swee Chuan, Chief Executive Officer of AAPICO Hitech Public Company Limited said the company operates 2 OEM auto parts facilities in Malaysia and 21 plants in Thailand. It indicates the confidence in the future of automotive industry in both countries and AAPICO is confident to bring Purem by Eberspaecher, one of the largest and top OEM exhaust makers in the world in reinforcing the Asean car production in the long run.

According to the statistics of Asean Automotive Federation, the region made 4,383,744 cars in 2022, a rise of 24% year over year. Thailand was the regional leader with 1,883,515 cars (+12%), following by Indonesia at 1,470,146 cars (+31%), Malaysia at 702,275 cars (+46%), Vietnam at 232,410 cars (+42%), the Philippines at 92,223 cars (+10%) and Myanmar at 3,175 cars (+62%).

About Purem by Eberspaecher

Purem by Eberspaecher is a subsidiary of the Esslingen-based Eberspaecher Group. To achieve clean and quiet mobility, more than 7,100 employees develop and produce exhaust and acoustic systems for passenger cars, CVs, and off-road vehicles. The technologies make a significant contribution to meeting the strictest emission standards and noise guidelines. Its customer base includes the world’s leading vehicle manufacturers. In 2022, the area within the group of companies generated revenue of around 5.7 billion euros. Net revenue adjusted for transitory items amounted to 1.9 billion euros.

About AAPICO Hitech Public Company Limited

AAPICO Hitech Public Company Limited, founded by Yeap Swee Chuan, was established in 1996 and was listed on the Stock Exchange of Thailand in 2002. The Company is comprised of 3 business pillars: the OEM Auto Parts Manufacturing Business, the Car Dealership Business, and the IoT Connectivity & Mobility Business. As of today, the Group comprises 48 subsidiaries and associate companies, of which 33 companies are operating in Thailand and 15 companies are located overseas. The Company’s main business initially was to design, produce, and install car assembly jigs and stamping dies; and to manufacture OEM automotive parts, including floor parts, cross members, pillars, brackets, clips, and fuel tanks for leading automobile assemblers in Thailand. The Company has since progressed by adding the production of chassis frame components, forging parts, machining parts, casting parts, plastic parts and plastic fuel tanks to its manufacturing portfolio. Revenue for 2022 was USD 800 million* with 5,400 employees. (*Remarks the exchange rate 1 USD = 35.5 THB)

About Eberspaecher

With approximately 10,700 employees at 80 locations worldwide, the Eberspaecher Group is one of the automotive industry’s leading system developers and suppliers. The family business, headquartered in Esslingen am Neckar, stands for innovative solutions in exhaust technology, automotive electronics and thermal management for a broad range of vehicle types. In combustion or hybrid engines and in e-mobility, the components and systems from Eberspaecher ensure greater comfort, higher safety and a clean environment. Eberspaecher is paving the way for future technologies such as mobile and stationary fuel cell applications, synthetic fuels as well as the use of hydrogen as an energy carrier. In 2022, the Group generated revenue of around 6.4 billion euros. Net revenue adjusted for transitory items amounted to 2.7 billion euros.

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