Luxembourg Tier I enters ASEAN market

International Automotive Components (IAC) Group (Luxembourg) plans to form two joint ventures with Malaysia's APM Automotive Holdings Berhad (APM, Selangor Darul Ehsan) to be based in Malaysia and Thailand.

The joint ventures will be IAC Group's first investments in the ASEAN (Association of Southeast Asian Nations) region and are subject to approval by Malaysian and Thai regulatory authorities. They will offer design, engineering and manufacturing for a wide range of vehicle interior components and systems, including instrument panels, door panels, floor consoles, interior trim, flooring and acoustics, overhead systems and package trays, as well as exterior components, such as fascias and rocker panels. IAC Group and APM see potential opportunities to support both multinational and domestic OEMs operating in the region.

APM, a regional automotive supplier of automotive interior products and solutions, will contribute automotive supply expertise and will provide significant business experience in the region. IAC Group will provide design, engineering and manufacturing expertise, along with a global infrastructure which supports leading automotive manufacturers as they expand vehicle platforms into the ASEAN region.

In Malaysia, the joint venture will be called APM IAC Automotive Systems Sdn Bhd, in which APM will hold the majority 60% equity interest. This joint venture will be supported by existing APM manufacturing facilities in the region. The Malaysian joint venture will pursue new business opportunities with both multinational and Malaysian OEMs.

In Thailand, the joint venture will be called IAC APM Automotive Systems Ltd., in which IAC Group will hold the majority 60% equity interest. This joint venture will establish the necessary infrastructure to achieve its strategic objective to support OEMs in Thailand.

"The joint ventures will allow APM to extend its core capabilities by providing modular systems to our existing OEM customers in Malaysia as well as new OEMs in the ASEAN region," said Fun Woh Peng, Executive Director of APM.

The joint ventures with APM follow strategic expansion by IAC Group earlier this year in Asia, including the opening of a second manufacturing facility in Chakan, India in March 2011. Additionally, in January 2011, the company acquired Manesar-based Multivac India Private Limited, a tier-one supplier of vehicle headliners, instrument panels, interior trim and door panels to key global vehicle manufacturers. These strategic transactions in the ASEAN region, along with significant investments in China and Japan, have further expanded IAC Group's footprint in key flourishing automotive areas of the region.-[email protected]