Chery Malaysia signs axle assembly deal with Sapura Industrial
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Chery Corporate Malaysia and Sapura Industrial’s Sapura Machining Corporation have signed a master purchase agreement for front and rear axle assembly work. Sapura says the contract covers selected Chery programmes and is worth about RM307 million over four and a half years.
Chery Corporate Malaysia and Sapura Industrial Berhad’s subsidiary, Sapura Machining Corporation, have signed a master purchase agreement for the assembly of front axle and rear axle systems for selected Chery vehicle programmes.
Sapura Industrial said the contract is estimated at about RM307 million over four and a half years. It is the first direct engagement between the two companies.
The agreement covers Chery vehicles with internal combustion engines, hybrid systems and battery-electric powertrains. Sapura Industrial said the work will also cover the Jaecoo J5 and vehicles under the Lepas brand.
The axle assembly project will be carried out at Sapura Industrial’s facility in Bukit Beruntung, Selangor. Both companies said the partnership supports localisation and Malaysia’s automotive supply chain.
What it means for you: more axle components for Chery and Jaecoo models may be assembled locally, which can support parts supply and workshop servicing in Malaysia.
Source: paultan.org
