25 May 2016

Corporate News

New Toyota Manufacturing Plant To Be Built In Malaysia

Kuala Lumpur, 25 May 2016 - UMW Toyota Motor Sdn Bhd (UMWT), the exclusive distributor and manufacturer of Toyota and Lexus vehicles in Malaysia, today announced that a second vehicle manufacturing plant will be built in Malaysia and will start operation in the early of 2019.

The new passenger cars manufacturing plant will complement the current UMWT’s wholly owned plant - Assembly Services Sdn Bhd (ASSB). The new plant is required as Toyota foresees future customers’ preferences are becoming more diverse in the future.

“In today’s business environment, customers’ requirements are getting ever more cultivated and we are committed to meeting their needs and aspirations. In order to meet customers’ growing demand, Toyota Motor Corporation along with UMW Group and UMWT have decided to level up our production to ensure operation efficiency and cost competitiveness,” said Mr. Tatsuro Takami, Managing Officer of Toyota Motor Corporation who made the announcement in Kuala Lumpur.

He also said, “This new plant building will be one of the important fields of practice to realize Toyota’s aims in providing “ever-better” cars for the public and also it’s initiative for a steady growth. I believe strongly, UMWT will strive to serve Malaysian customers with high quality vehicles manufactured by our talented people working in a new and advanced plant.”

“We are grateful to our joint-venture partner, Toyota Motor Corporation, for their support and willingness to proceed with this important project which is seen as a move to strengthen our commitment to meet customers’ demand in Malaysia,” said Tan Sri Asmat Kamaludin, Chairman of UMW Group.

The new plant will be located at the Bukit Raja Industrial Estate in Klang, Selangor with land size of approximately 670,000 square metres.

According to Mr. Akio Takeyama, Deputy Chairman of UMW Toyota Motor, “The investment for this project is approximately RM 2 billion which include land, building and equipment. The construction work will begin in the second half of this year and we expect to start our operation of manufacturing passenger cars including models that meet the Energy Efficient Vehicle criteria set by the government in early 2019. The initial production of the new plant will be 50,000 units per year and we hope to expand it depending on the market demand.”

The new plant will be equipped with advanced production technology to correspond to Toyota's ultimate goal to establish “Simple, Slim, and Flexible” plants around the world. It will have 5 main characteristics that are High Quality, Better Efficiency, Higher Employee Skills, Employee-Friendly and Eco-Friendly.

UMWT is positive that its new plant will contribute to the further development of the Malaysian auto industry and it supports the present National Automotive Policy (NAP) which encourages greater local production of vehicles.

The current UMWT’s plant in Shah Alam, will continue its operations. However, part of the current passenger car line will be shifted to the new plant. The current plant will undergo improvement works and streamline its production to produce mainly commercial vehicles. In total, UMWT will have a combined production volume of approximately 90,000 to 100,000 units of vehicles from both plants annually.

Additionally, Toyota Boshoku UMW, a joint venture company between UMWT and Toyota Boshoku Corporation which makes seats and other interior components for Toyota models will also move its production activities to the new plant.

Company Name UMW TOYOTA MOTOR SDN. BHD.
Location No. 2, Persiaran Raja Muda, Seksyen 15, 40200 Shah Alam, Selangor Darul Ehsan, Malaysia.
Foundation Year 1982
Main Business Vehicle / Parts imports and exports and sales.
Management Tan Sri Asmat Kamaludin, Chairman
Mr. Akio Takeyama, Deputy Chairman
Datuk Ismet Suki, President
Shareholding Structure UMW Corporation Sdn. Bhd. (51%)
Toyota Motor Corporation (39%)
Toyota Tsusho Corporation (10%)
Total Employee 3,500 (as of April 2016)
Company Name UMW HOLDINGS BERHAD
Location Jalan Utas 15/7, 40915 Shah Alam, Selangor Darul Ehsan, Malaysia.
Foundation Year 1917
Main Business Automotive; Equipment; Manufacturing & Engineering; Oil & Gas
Management Tan Sri Asmat Kamaludin, Chairman
Mr. Badrul Feisal Abdul Rahim, President and Group CEO
Shareholding Structure
(as of April 2016)
Permodalan Nasional Berhad /PNB Unit Trust Funds (56.09%)
Foreign Shareholders (12.73%)
Employees Provident Fund Board (17.71%)
Other Local Shareholders (13.47%)
Total Employees 12,400 (as of April 2016)
Company Name ASSEMBLY SERVICES SDN. BHD.
Location Lot 2, Jalan Pelaya 15 / 1, Seksyen 15, Persiaran Selangor, Shah Alam, 40000 Selangor Darul Ehsan, Malaysia.
Foundation Year 1968
Main Business Manufacturing of Automobiles
Management Mr. Akio Takeyama, Director
Datuk Ismet Suki, Director
Shareholding Structure 100% Owned by UMW Toyota Motor Sdn. Bhd.
Total Employee 3,000 (as of April 2016)
Company Name TOYOTA BOSHOKU UMW SDN. BHD.
Location Jalan Sepana 15/3, Seksyen 15, 40200 Shah Alam, Selangor, Malaysia.
Foundation Year 2003
Main Business Manufactures car seats and interior vehicles parts.
Shareholding Structure UMW Toyota Motor Sdn. Bhd. (65%).
Toyota Boshoku Corporation (35%)
Total Employee 470 (as of April 2016)