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KBES Bhd will exclusively assemble and fabricate bodies of coaches and buses for China’s Beiqi Foton Motor Co Ltd (Foton), to be sold in Malaysia.
KBES's wholly-owned unit Super Coach Assemble Plant Sdn Bhd (SCAP) inked a cooperation agreement with Foton, which named SCAP the exclusive assembler of Foton's products, to be sold to local authorised wholesalers, retailer or end users here for three years, according to KBES' Bursa Malaysia filing.
As such, KBES will transform its Kamunting facility into a full-fledged assembly plant for Foton's products.
Shanghai Stock Exchange-listed Foton, which is part of the Beijing Automotive Industry Holding Co Ltd Group, is said to be a leading automotive player and largest commercial vehicle manufacturer in China.
Its business scope covers the manufacturing of vehicles and spare parts, as well as the assembling of commercial vehicles for both domestic and regional markets.
KBES said the partnership should drive revenue growth for the company through product development and greater market penetration, which is in line with its intention to embark on the assembling and distribution of commercial vehicles, and increase its market presence in the local vehicles industry.
Additionally, KBES said it is also looking at establishing Malaysia as the hub for the Asean market, particularly Indonesia, for the export of Foton buses.
“With regards to product range, KBES shall also leverage on the technology of Foton in electric vehicles to develop electric buses for the domestic and regional markets,” it said.