KUALA LUMPUR: EP Manufacturing Bhd (EPMB) is now closer to realising its diversification into the next-generation electric vehicle (EV) business, by capitalising on the green agenda of the Chinese government and global funds.
The company today signed a memorandum of agreement (MoA) with China-based Sharkgulf Technologies Group Ltd and CIS Pride Silver Rock Fund (CPSR) to kick-start the new strategic partnership.
EPMB executive chairman Hamidon Abdullah said this partnership will create a new chapter to the company's efforts to diversify complementing our present business.
"The sharing of research and development (R&D) between EPMB and Sharkgulf is about keeping abreast with fast-changing developments in the internet of things (IoT) arena and moving up the value chain.
"At the same time, it would help us address international cost tables. At EPMB, we acknowledge that the world is changing and we must evolve in tandem with the rapid change to stay relevant," he said in a statement today.
Sharkgulf is the developer and manufacturer of the Blueshark brand two-wheeled EV.
EPMB is venturing into the manufacturing, assembly and distribution of two-wheeled EVs for Malaysia and other Southeast-Asia countries, as it seeks to capitalise on the multi-billion-dollar global two-wheel EV industry.
The company will be establishing a manufacturing plant and a sales and distribution centre in Malaysia for the Blueshark-branded two-wheeled EVs.
In addition, EPMB will also be establishing an R&D centre, which will share technical know-how and resources to Sharkgulf's Gigafactory in Qingdao West Coast New Area in China.
CPSR will be the primary funder for this new venture, which will procure investments in Sharkgulf's manufacturing plant in China and EPMB's manufacturing plant in Malaysia.
This also includes the financial leasing of Sharkgulf's products and services, facilitation and management of Sharkgulf's product supply chain.
The signing today was witnessed by the Malaysia Automotive Robotics and IoT Institute (MARii) chief executive officer Datuk Madani Sahari and Shanghai-based Malaysian Investment Development Authority (MIDA) director Steven Cheng Seng Hock
This event marks the progress from the memorandum of understanding (MoU) signed between EPMB and MARii signed on 10 November 2021 to collaborate and venture into a super delivery ecosystem and EVs.
Madani said Blueshark is positioning for a global presence and EPMB is partnering with them.
"A manufacturing base with shared R&D efforts in Malaysia would address cost structures to make these two-wheeled EVs cost-effective.
"With EPMB's manufacturing facility in place, MARii and the EPMB will be able to embark with our other programmes under the MoU.
"On our part, MARii is committed to assisting and facilitating EPMB and its partners in their new two-wheeled EV venture," Madani said.
CPSR is an investment fund managed by Silver Rock Capital Ltd, Realchamp Asset Management Ltd and The Pride Group Ltd. Silver Rock is an investment platform co-founded by Steven Rockefeller III and Silver Mountain Group. Silver Mountain Group was established in Hong Kong by a European family in 2013.
Over the next 3-10 years, the Southeast-Asian countries are expected to see explosive growth in the two-wheeled EV market, surpassing Europe and East Asia. Globally, the electric two-wheeled vehicles market is forecast to reach US$367.37 billion by 2026, according to an independent market study published by ResearchAndMarkets.com.
This presents a huge opportunity for EPMB, supported by its long-built experience in making high-quality automotive parts.
The Gigafactory in Qingdao will have a maximum capacity of one million completely built-up (CBU) units and two million completely knocked-down (CKD) units.
The Qingdao plant will cover China, the Far East and Europe, while EPMB's manufacturing plant in Malaysia will cover Southeast Asia and South America.