ATG looking at Malaysian factory plans

Perth-based parts manufacturer Automotive Technology Group has entered into an agreement with a Malaysian components fabricator to assess the viability of establishing a joint venture factory in Malaysia.

ATG announced today it had executed a memorandum of understanding with Malaysian automotive component manufacturer Proreka to launch a feasibility study on the potential to jointly develop a Sprintex Supercharger factory in Malaysia.

Recent independent testing had indicated the latest Sprintex Superchargers were the world's most efficient, ATG said, and the establishing the proposed joint venture would reduce manufacturing costs by around 50 per cent.

ATG managing director Steven Apedaile said the joint venture could offer a competitive cost basis for the supply of the Sprintex range into the original equipment manufacturer market.

"The MOU with Proreka has the potential to be company changing for ATG," Mr Apedaile said.

"This JV could provide ATG with the ability to manufacture the world's most efficient supercharger in volume at a viable price for the global automotive market.

"We are excited at the prospect of working with Proreka to achieve this."

The feasibility study is expected to be completed within three months.