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.
Tatsuro Takami, Managing Officer of Toyota Motor Corporation, commented, “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.”
He added, “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.”
The new plant will be located at the Bukit Raja Industrial Estate in Klang, Selangor with land size of approximately 670,000 square meters. The investment for the new plant construction will costs approximately RM 2 billion, which include land, building and equipment. Construction work is set to begin in the second half of this year and completion is scheduled in early 2019. The initial production of the new plant has been extimated at 50,000 units per year, and UMW Toyota Motor hopes to expand on the pre-set volume, depending on 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.
The New Toyota Plant project overview:
Investment by: UMW Toyota Motor Sdn. Bhd. (Joint Venture between UMW Corporation and Toyota)
Operation by:Assembly Service Sdn. Bhd. (Wholly-owned subsidiary of UMW Toyota Motor Sdn. Bhd.)
Location of New Plant: Bukit Raja Industrial Estate, Selangor
Plant & Land size: Approximately 670,000 square metres
Production Volume: 50,000 units per year (initial)
Type of Models Produced: Passenger Cars including Energy Efficient Vehicles (EEV) models that meet criteria set by the government.
Amount of Investment: Approximately RM 2 billion
Start of Construction: Second half of 2016
Start of Operations: Early 2019