KUALA LUMPUR: Sapura Industrial Bhd
has secured a contract worth an estimated RM307mil over 4.5 years from Chery Corporate Malaysia Sdn Bhd for the assembly of front and rear axle systems.
In a statement, the group said its wholly owned subsidiary, Sapura Machining Corporation Sdn Bhd, had entered into a master purchase agreement with Chery, marking its first direct engagement with the Chinese automotive manufacturer.
The contract covers axle assembly for Chery's internal combustion engine (ICE), hybrid electric vehicle (HEV) and battery electric vehicle (BEV) platforms, including the JAECOO J5 and vehicles under the LEPAS brand.
The project will be undertaken at Sapura Industrial's new facility in Bukit Beruntung, Selangor.
Managing director Datuk Syed Izuan Syed Kamarulbahrin said the contract marked an important milestone in the group's efforts to diversify its customer base.
"It underscores the confidence global automotive manufacturers place in Malaysia's automotive supply chain and in local partners with proven technical expertise, operational strength and high-quality standards.
"We are pleased to establish a long-term partnership with Chery, supporting its localisation objectives and contributing to the advancement of Malaysia's automotive industry," he said.
The group said the collaboration would support Chery's expansion of local manufacturing capacity and supplier development in Malaysia.
It added that the programme was in line with its strategy to expand its capabilities across ICE, HEV and BEV platforms while strengthening its position as a supplier to global automotive manufacturers operating in Malaysia.
