Business

Monday November 2, 2009

DRB-HICOM ops in Pekan eyes bigger role

By JAGDEV SINGH SIDHU


PEKAN: DRB-HICOM Bhd’s operations in Pekan, Pahang, is aiming for a bigger role in the automotive landscape as previous upgrades and realignment of the manufacturing processes there have set the complex for its next phase of growth.

“The plan now is to bring in more volume to Pekan,’’ said Hicom Automotive Manufacturers (M) Sdn Bhd chief executive officer Abdul Rashid Musa in a media briefing last week.

The auto complex, which has a capacity of 60,000 vehicles a year on two shifts, is currently running on a single shift.

It recently celebrated its 25th anniversary and, over those years, DRB-HICOM and its partners have invested a total of RM1bil and produced just over 480,000 cars at the complex. In the past few years, it has seen its processes there realigned into three main areas – the assembly of passenger cars, commercial vehicles and special vehicles.

In the assembly of passenger vehicles, the two main cars being assembled at the complex are Mercedes-Benz and Suzuki.

The Mercedes-Benz operations, which started with assembling just four units of E-Class a day in 2005, today has a capacity of rolling out 20 units a day of either the E, C or the flagship S-Class.

Rashid said Mercedes-Benz had been impressed by the ability and staff at Pekan, which apart from bridging the communications issues seen at other Mercedes-Benz’s completely-knocked down plants worldwide, had progressively improved their ability.

According to Rashid, Mercedes-Benz has plans in the pipeline that would lead to a bigger role for its plant here.

Indications of the German company’s intent of going the distance at its Pekan plant was given when it asked some of its component suppliers to relocate there, said Rashid.

Meanwhile, the capacity to assemble Suzuki cars at the complex is 25 units a day on a single shift.

For commercial vehicles, the staple is provided by ISUZU HICOM Malaysia Sdn Bhd where the plant has a production capacity of 12,000 units a year on a single shift.

The commercial vehicles produced there were for the local market where it has a 30% share of light-duty truck market in the country, said CEO Norifumi Matsumoto.

ISUZU HICOM hopes to sell 13,000 units next year and Matsumoto said the company was thinking of expanding its manufacturing activities in Malaysia to increase revenue.

Wrapping up the group’s assembly business would be its defence arm – DRB-HICOM Defence Technologies Sdn Bhd.

This company predominantly assembles vehicles – both soft and hard skin – for the army but has in recent year expanded into commercial vehicles segment.

It is in the process of finishing off an order from RapidPenang. In all, its contracts in hand are worth RM800mil and that would keep the company busy into 2011.

DRB-HICOM Defence, which allocates 3% to 5% of revenue for research and development, has also secured contracts from Brunei and Bangladesh.

At the complex is also DRB-HICOM Auto Solutions Sdn Bhd, which is the group’s pre-delivery inspection centre where accessories are fitted prior to delivery.


DRBHCOM : [Stock Watch] [News]


For latest Bursa Malaysia indices, charts and other information click here

  • E-mail this story
  • Print this story