KUALA LUMPUR: EP Manufacturing Bhd
(EPMB) has proposed to diversify its existing principal activities to include the assembly of vehicles as it aims to strengthen its existing automotive business.
In a filing with Bursa Malaysia, the group said it is constantly exploring new business opportunities within the broader automotive business industry to provide additional revenue streams and recurring profit.
"To this end, EPMB Group has taken gradual steps to venture into the Vehicles Assembly Business," it said.
EPMB said the diversification would allow it to expand its participation in the wider automotive industry upstream supply chain.
"Given that EPMB Group is already involved in the manufacturing of automotive parts and components, EPMB Group would be able to vertically integrate the Vehicles Assembly Business into its existing supply chain and leverage its existing technical know-how and knowledge in running its day-to-day operations and apply them to the Vehicles Assembly Business."
Additionally, it said its ongoing collaborations with BAIC International Development Co., Ltd and Great Wall Motor Sales Malaysia Sdn Bhd may also provide future business opportunities to the Group, which may include the manufacturing of automotive parts and components for BAIC and GWM, among others.
EPMB said it would leverage on the experience and networks of executive chairman Hamidon Abdullah, executive director Aidon Hamidon and director of manufacturing Mohd Nizam Mohamed to secure more vehicles assembly contracts moving forward.
The group, which, via its subsidiaries, is principally involved in the manufacturing of automotive parts and components, said it expects its existing automotive business to remain as a significant contributor to its total revenue moving forward.
The group said the proposed diversification is expected to be completed by the fourth quarter of 2024.
