Tan Chong to purchase Ford's former AMI plant?

When Ford Malaysia Sdn Bhd existed from the Malaysian market (handling over the distribution of Ford vehicles to Sime Darby's AutoConneXion), it's manufacturing subsidiary Associated Motor Industries Malaysia Sdn Bhd (AMI) plant in Shah Alam was shutdown as well. The plant have been languishing there ever since.

Within that period of time various companies were rumoured to be interested in buying the plant - including Volkswagen. But as we all know, months came by and nothing materialised. Now however, the distributor of Nissan vehicles in Malaysia and Singapore - Tan Chong Motor Holdings, via its local manufacturing subsidiary Tan Chong Motor Assemblies is rumoured to be seriously looking into purchasing the property. It's existing plant in Segambut is sitting on prime location and the company might consider to liquidate its assets there to raise cash and moved to a more suitable industrial estate. TCMA's Segambut plant currently assembles Vanette half-tonne commercial van, Urvan one-tonne commercial van as well as aging models like Frontier pick-up, Sentra sedan, and the X-Trail SUV. The newer Nissan models are assembled in TCMA's plant in Serendah, which currently assembles that Latio, Grand Livina and Sylphy.

The former AMI plant is located nearby 2 other assembly plants - Volvo's Swedish Motor Assemblies which the Volvo S40, V50 (both of which are exported to Thailand) and XC90 as well as Volvo and Renault trucks and Toyota's Assembly Services Sdn. Bhd. which makes the Vios, Innova, Fortuner, Hilux and Hiace (which is also exported to Thailand).

The news is rather surprising considering the general state of over-capacity in manufacturing plants around the region. Still, consider this as nothing more than a rumour.

The Tan Chong group is not the only one that is making some changes to its assembly operations. Proton is also expected to sell off its Shah Alam plant and consolidate its operations in its newer facility in Tanjung Malim, Perak. Again, this is driven by the rationale that the plant is sitting on prime area that is probably worth more than the cars the plant produces.