Berjaya Property Bhd is expanding into the automotive manufacturing sector after its wholly owned subsidiary, Alam Baiduri Sdn Bhd, entered into a joint venture (JV) with Trusmax Investment Co Ltd, a wholly owned subsidiary of China’s Wanli Tire Co Ltd, to establish an automotive tyre manufacturing business in Malaysia.
In a filing with Bursa Malaysia, the group said the partnership will undertake the research, development, design, manufacturing and sale of automotive tyres, as well as related spare parts and components. The new JV company will also provide after-sales services, supporting a comprehensive automotive tyre business in the local market.
Under the agreement, Alam Baiduri will hold a 30% equity stake in the JV company, while Trusmax will own the remaining 70%.
The parties estimate that approximately RM1.3 billion will be required to develop and establish the tyre manufacturing plant. Of the total investment, RM813.5 million, or about 63%, will be financed through shareholders’ equity contributions, while the remaining RM491.45 million, representing 37%, will be funded through borrowings.
As part of its investment, Alam Baiduri will inject RM125.7 million in cash and contribute a 67.9-acre freehold land parcel valued at RM118.31 million, bringing its total capital contribution to RM244.01 million.
The agreed land valuation takes into account planned construction works, as well as land conversion and subdivision costs estimated at approximately RM60 million, which will be undertaken by Alam Baiduri. The company said the cash contribution together with the related construction and land development costs will be financed through a combination of internally generated funds and borrowings.
The joint venture marks Berjaya Property’s strategic diversification into the automotive manufacturing industry, while leveraging Wanli Tire’s expertise in tyre technology and production to establish a new manufacturing presence in Malaysia. The collaboration is expected to strengthen the country’s automotive supply chain and support future growth opportunities in the regional tyre market.
