Monday 15 August 2011

TCHONG (Stock code: 4405)

The Tan Chong Group is eyeing Myanmar to expand its automotive business there and further strengthen its presence in Indochina, said its group senior advisor, Datuk Cheah Sam Kip. "We will start off our business in Myanmar with an auto service centre and that will be the springboard to develop other businesses in that country." Cheah said an application to the Myanmar government had already been submitted and it was now awaiting the approval. The group is confident of getting the approval this year. He said Indochina will be the key focus for Tan Chong Group to expand its operations following the competitive automotive landscape in Malaysia, adding that the group has also embarked on an aggressive expansion plan in Vietnam, Indonesia, Cambodia and Laos. (The Star, June 11, 2011)

Tan Chong, through its wholly owned subsidiary Motor Image Group, recently entered into an agreement with Fuji Heavy Industries of Japan to assemble Subaru compact sport utility vehicles (SUVs) in Malaysia. Since it already owns an assembly plant in Malaysia, Tan Chong decided to use the facilities to produce Subarus with no need to invest additionally. Subaru SUVs will be marketed in Malaysia, Indonesia and Thailand where total passenger car sales are larger than in other markets combined across Southeast Asia. SUVs imported from Malaysia will enjoy zero tariffs under the Asean Free Trade Area agreement, making them cheaper than those imported from Japan. (Bangkok Post, August 11, 2011)

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