DRB-Hicom inks MOU with China’s Zhejiang Geely to develop, promote Automotive HiTech Valley in Perak

13 Apr 2022

DRB-Hicom Bhd said Wednesday it has inked a memorandum of understanding (MOU) with China’s Zhejiang Geely Holding Group Co Ltd (Geely) for the purpose of developing and promoting the Automotive HiTech Valley (AHTV) in Tanjong Malim, Perak.

AHTV aims to be the next generation vehicle hub in Tanjong Malim, covering extensive automotive and mobility solutions value chain from a full-fledged high technology research and development (R&D) centre to a manufacturing cluster as well as supporting services and associated ecosystem including logistics, research university, training and learning institutions within a smart city, DRB-Hicom said in a bourse filing.

DRB-Hicom said the MOU will add value to the company as it will become a strategic platform for both parties to explore means of collaborating towards the establishment of this comprehensive “Automotive City”, the development of which is intended to bring extended multiplier effects through the set-up of an automotive industry cluster in Tanjong Malim, attracting investors and vendors from China and from other parts of the world.

The MOU will be effective on the date of the MOU and will expire after a period of six months.

Geely is a global mobility technology group headquartered in the city of Hangzhou in southeast China’s Zhejiang province. It owns and manages a number of brands including Geely Auto, Lynk & Co, ZEEKR, Geometry, Volvo Cars and Polestar.

The group also holds a 49.9% stake in national carmaker Proton Holdings Bhd.

DRB-Hicom shares were unchanged at RM1.48 on Wednesday, valuing the group at RM2.86 billion.

Over the past one year, the counter has declined 23.32%.

Source: The Edge Markets