Sapura Industrial wins RM307 million axle assembly contract with Chery
The four-and-a-half-year programme covers combustion-engine, hybrid and battery-electric platforms, with work to take place in Selangor.
Sapura Industrial Bhd said it has secured a contract worth RM307 million to assemble axles for selected Chery vehicle programmes. The work covers front and rear systems over four-and-a-half years and will be undertaken at its new Bukit Beruntung facility in Selangor.
Its subsidiary, Sapura Machining Corporation Sdn Bhd, signed a master purchase agreement with Chery Corporate Malaysia Sdn Bhd. This is Sapura Industrial's first direct engagement with Chery, adding the Chinese vehicle manufacturer to its customer base.
The assembly programme spans internal combustion engines, hybrid electric vehicles and battery electric vehicles. Models covered include the Jaecoo J5 and vehicles sold under the Lepas brand.
Managing director Datuk Syed Izuan Syed Kamarulbahrin said the partnership would support Chery's localisation objectives. Chery Malaysia vice-president Cheng Namweng said local partners remained central to its regional expansion plans and expressed confidence in Sapura Industrial as a long-term manufacturing partner.
Sapura Industrial also said it would continue investing in engineering capabilities, advanced technologies and workforce development.
