EP Shichang Automotive Systems Forms Malaysian Joint Venture

EP Manufacturing and Shichang Establish Malaysian Automotive Joint Venture

Announced on October 9, 2026, EP Manufacturing Bhd. (EPMB), through its subsidiary Fundwin Sdn. Bhd., has agreed to establish a Malaysian joint venture with China-based Hebei Shichang Automotive Parts Co., Ltd. The new company, EP Shichang Automotive Systems Sdn. Bhd., will manufacture automotive fuel tanks, fuel system components, and related products for original equipment manufacturers (OEMs) and aftermarket customers. The partnership combines Fundwin's local operational responsibilities with Shichang's technical and manufacturing expertise. With an initial share capital of MYR10 million, the venture is intended to support automotive component production and product development for Malaysia, the Association of Southeast Asian Nations (ASEAN), and other markets agreed upon by the partners.

Joint Venture Ownership and Initial Capital

The Malaysian joint venture will begin operations with an initial share capital of MYR10 million, with ownership divided between Fundwin and Shichang's Hong Kong subsidiary. Fundwin, a subsidiary of EP Manufacturing Bhd, will hold a 51% stake, giving it the majority ownership position. Shichang's Hong Kong subsidiary will own the remaining 49%. This ownership structure establishes the partners' respective equity interests in the new business while bringing together a Malaysian automotive manufacturing participant and a Chinese automotive parts specialist. The agreement identifies the initial capitalization and shareholding distribution but does not specify additional investment commitments, revenue targets, production volumes, or a start date for manufacturing.

Automotive Components and Business Activities

EP Shichang Automotive Systems Sdn. Bhd. will focus on automotive fuel tanks, fuel system components, and related products for OEM and aftermarket customers. Its planned business activities cover product development and design, manufacturing, assembly, supply and distribution, as well as imports and exports. This scope allows the joint venture to address multiple stages of the component business, from developing products to manufacturing and distributing them. The partners intend to serve Malaysia and ASEAN, alongside other markets that they mutually agree to pursue. However, the announcement does not identify specific customers, individual export destinations beyond these intended markets, or confirmed product supply contracts.

Division of Responsibilities Between Fundwin and Shichang

The joint venture partners will contribute different capabilities to support the company's operations. Fundwin will oversee local operations and provide assistance with financing and regulatory compliance, establishing its role in managing the business within Malaysia. Shichang will contribute technical knowledge, testing assistance, manufacturing expertise, and personnel training. These responsibilities combine local operational support with technical capabilities relevant to automotive component development and production. The agreement also provides for cooperation between the partners on product development and localization. Although the announcement establishes this division of responsibilities, it does not disclose detailed implementation schedules, staffing levels, testing facilities, or specific performance targets for the joint venture.

Product Localization and Thermal Coolant Tanks

Beyond conventional automotive fuel tanks and fuel system components, the partners plan to cooperate on product development and localization, including thermal coolant tanks for new energy vehicles and other related plastic tank products. This planned work extends the venture's potential product scope into components associated with new energy vehicle applications. The announcement identifies thermal coolant tanks as a specific area of cooperation but does not provide technical specifications, vehicle compatibility details, production targets, or a launch timetable. Localization is part of the partners' stated development plans, although the announcement does not specify which products will be localized first or how manufacturing responsibilities for individual product lines will be allocated between the two parties.

Agreement Duration and Extension Conditions

The joint venture agreement will remain in effect for 30 years unless it is terminated earlier under the applicable arrangements. The parties may extend the agreement if both agree to do so. This term provides a long-duration contractual framework for their planned cooperation in automotive component manufacturing, product development, and market distribution. However, the announcement does not specify the circumstances under which early termination could occur, the conditions governing a potential extension, or any renewal timetable. It also does not provide a confirmed production commencement date or detailed operational milestones. The stated agreement period therefore establishes the intended duration of the partnership without confirming how its commercial activities will develop over time.

Industry Impact & Outlook

The partnership brings together Malaysian operational capabilities and Chinese automotive component expertise, creating a framework for serving OEM and aftermarket demand across Malaysia and ASEAN. Its planned product range, including thermal coolant tanks for new energy vehicles, also gives the partners a stated pathway to explore components beyond conventional fuel systems. The venture's practical impact will depend on implementation, product development, localization progress, and the partners' ability to establish supply and distribution activities in their agreed markets. Because the announcement provides no production volumes, customer commitments, or launch dates, the scale and timing of its contribution to regional automotive manufacturing remain undetermined.

Frequently Asked Questions

What is the purpose of the EP Shichang Automotive Systems joint venture?
The joint venture will manufacture automotive fuel tanks, fuel system components, and related products for OEM and aftermarket customers. Established through an agreement between EP Manufacturing Bhd.'s subsidiary Fundwin Sdn. Bhd. and China's Hebei Shichang Automotive Parts Co., Ltd., the company will also undertake product development, design, assembly, supply, distribution, imports, and exports. Its intended markets include Malaysia, ASEAN, and other destinations agreed upon by the partners. The announcement also identifies product localization and thermal coolant tanks for new energy vehicles as areas of planned cooperation.

How much capital will the joint venture have, and who owns it?
The Malaysian automotive joint venture will have initial share capital of MYR10 million, divided between Fundwin and Shichang's Hong Kong subsidiary. Fundwin will own 51% of the company, while the Hong Kong subsidiary will hold the remaining 49%. Fundwin is a subsidiary of EP Manufacturing Bhd. The announced ownership structure establishes the partners' respective equity stakes, but the announcement does not provide additional investment commitments, projected revenue, expected profitability, or production capacity. Those commercial details have not been specified in the reported agreement.

What products and markets will the joint venture target?
The joint venture plans to produce automotive fuel tanks, fuel system components, and related products for original equipment manufacturers and aftermarket customers. Its intended markets include Malaysia, ASEAN, and other markets mutually agreed upon by the partners. The company will also conduct product development and design, manufacturing, assembly, supply and distribution, imports, and exports. In addition, the partners intend to collaborate on localized products, including thermal coolant tanks for new energy vehicles and other related plastic tank products. The announcement does not specify individual customers, confirmed orders, production volumes, or launch dates.

What responsibilities will Fundwin and Shichang have?
Fundwin will manage local operations and provide support for financing and regulatory compliance, while Shichang will contribute technical knowledge, testing assistance, manufacturing expertise, and personnel training. These responsibilities establish complementary roles for the Malaysian and Chinese partners in operating the joint venture. Both parties also plan to cooperate on product development and localization. However, the announcement does not specify staffing arrangements, individual testing procedures, production targets, or detailed project schedules. The precise implementation of these responsibilities will depend on the partners' subsequent operational decisions and the requirements of their agreed business activities.

How long will the joint venture agreement remain in effect?
The agreement establishing the joint venture has a 30-year term, unless it ends earlier under the applicable arrangements. The partners may extend the agreement if both parties agree to the extension. The announced term provides a long-duration framework for their cooperation in automotive component manufacturing, product development, and distribution. However, the announcement does not detail early termination provisions, renewal conditions, or a specific manufacturing commencement date. It also does not establish a schedule for future investment or product launches, so those operational details remain unspecified in the available announcement.