Chery Corporate Malaysia, Sapura enter agreement for assembly of Chery and Jaecoo front, rear axle systems

Chery Corporate Malaysia and Sapura Industrial Berhad (SIB) subsidiary, Sapura Machining Corporation (SMC) have executed a master purchase agreement for the assembly of front axle and rear axle systems for selected Chery vehicle programmes, Sapura Industrial has announced.

The agreement marks the first direct engagement between Sapura Industrial and Chery, and the contract is estimated to be valued at approximately RM307 million over a period of four and a half years, according to the company.

The master purchase agreement covers the assembly of front and rear axle systems for Chery vehicles with internal combustion engines, hybrid and battery-electric powertrains, including the Jaecoo J5 and vehicles under the Lepas brand, SIB stated.

The project will be undertaken at the SIB facility in Bukit Beruntung, Selangor, which SIB says will reinforce the Sapura group’s presence in one of Malaysia’s key automotive hubs “while creating opportunities for broader industry collaboration and value creation across the local automotive ecosystem”, it said.

“This represents an important milestone for Sapura Industrial as our first direct engagement with Chery. It underscores the confidence global automotive manufacturers place in Malaysia’s automotive supply chain and in local partners with proven technical expertise, operational strength and high-quality standards,” managing director of Sapura Industrial Berhad Datuk Syed Izuan Syed Kamarulbahrin said.

“We are pleased to establish a long-term partnership with Chery, supporting its localisation objectives and contributing to the advancement of Malaysia’s automotive industry,” he continued.

“Malaysia plays a key role in Chery’s regional expansion ambitions with capable local partners remaining central to our strategy. Our partnership with Sapura Industrial reflects this commitment and supports our long-term plans in Malaysia,” said Chery Corporate Malaysia vice president Cheng Namweng.

“We have seen firsthand Sapura Industrial’s professionalism, technical expertise and responsiveness throughout our engagement. The team has consistently demonstrated strong execution and a quality-focused approach. We are confident in Sapura Industrial as a trusted partner as we continue expanding,” Cheng continued.

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