PETALING JAYA: ACO Group Bhd, one of Malaysia’s largest distributors of electrical products, is pursuing opportunities in clean energy as demand rises on the back of increasing emphasis on environmental sustainability.
Executive director Sean Tan (pic) told StarBiz that the company’s recent developments are aimed at evolving ACO Group into a high-growth company focused on the electric vehicle (EV) and solar energy industries.
“ACO Group is making a foray into the green mobility sector, particularly in EV infrastructure as we believe there is significant potential in this area.
“In Malaysia, there are not many EVs on the road due to the limited number of charging stations.”
“In the recently announced 12th Malaysia Plan or 12MP, the EV industry was included as a key pillar in the National Automotive Policy and is expected to play an active role in the Low Carbon Mobility Blueprint.
“Our investment in EV Connection Sdn Bhd puts us in a strategic position to be at the forefront of this vibrant market.”
The group on Monday announced that it was proposing to acquire a 10% stake in EV Connection.
The company specialises in EV charging solutions and charging stations.
As an authorised installer and service provider of EV charging stations for many auto makers such as Mercedes Benz, Volvo and Hyundai and to oil and gas (O&G) companies, EV Connection has so far supplied and installed more than 800 EV chargers.
It owns and operates 20 EV chargers throughout Malaysia and has the largest network of direct-current (DC) fast charging stations in Malaysia.
ACO Group and EV Connection intend to leverage on their respective strengths to scale up the EV charging network by building more EV charging stations, making them a common sight at major highways, office buildings, commercial centres, public locations, shopping malls, condominiums and even homes.
To ensure a green energy loop, he said solar PV systems are installed to power the EV charging stations.
This has received encouraging market response and EV Connection made a breakthrough via a collaboration with an international O&G player with a large network of petrol stations.
EV Connection has so far installed five solar-powered EV charging stations at petrol stations.
It has plans to increase this to 100 stations over the next five years.
The group will also be installing Johor’s first and fastest 180-kilowatts DC EV charging station at the company’s headquarters.
EV owners in Johor would be able to charge their EVs within 30 minutes, as compared to alternative current or AC charging points that take about six to 10 hours for a full charge.
“The rapid rise of the domestic solar industry in recent years has created new business opportunities across the ecosystem, which includes the supply of electrical products.
“As a leading distributor of electrical products and accessories, we have evolved our business model to keep up with the latest trends in the energy industry.
“We have successfully expanded our product offerings and added new distributorships to include solar-related electrical equipment such as solar panels, inverters and cables.”
The partnership is symbiotic as EV Connection would be able to leverage on the group’s solar related products and materials at competitive prices, thus enhancing its competitive advantage in the industry.
Meanwhile, EV Connection will open up a new market segment for ACO Group to supply its electrical products and expand its earnings contribution from EV infrastructure development projects.
As Malaysia pushes forward to reduce its carbon emissions, Tan added that the adoption of EV and solar as a renewable energy will accelerate further.
Against the favourable backdrop, ACO Group is making its way to grab a slice of the multi-billion-ringgit solar pie, he noted.