KUALA LUMPUR: APM Automotive Holdings Bhd said a unit in Indonesia has entered into a joint venture deal with Hyundai Motor Company to produce automobile seats and related components.
The joint venture, APM told Bursa Malaysia today, is to support Hyundai's automobile manufacturing plant in Cikarang, located about 40km east of Jakarta.
The plant, with the capacity to produce 150,000 vehicles a year, is expected to be fully operational in the second half of 2021.
Half the total production is targeted for export to neighbouring countries.
"The Board believes that the timing of the Proposed Joint Venture is appropriate to capture the opportunities to expand APM Group’s current seat business overseas," APM said.
PT. APM Automotive Indonesia, an indirect wholly owned subsidiary of APM, on Friday entered into a joint venture deal with Hyundai Transys Inc to manufacture and supply automobile seats and its related parts and components to PT Hyundai Motor Manufacturing Indonesia.
Transys is a wholly-owned subsidiary of Hyundai Motor Company.
Under the deal, PT APM would acquire a 50% stake in PT. Hyundai Transys Indonesia (HTI) for RM2.17mil cash.
It would also sell a plot of industrial land in Cikarang to HTI for RM22.5mil for the purpose of building the car seat manufacturing plant.
The shareholders of the joint venture company would contribute up to US$15.356mil each as capital.
Each shareholder shall make an initial capital contribution of US$4mil by July 30.
"Upon completion of each capital contributions, each Shareholder shall hold 50% of the total issued shares in HTI," APM said.
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