Chery（奇瑞）has signed a master purchase agreement with Malaysian automotive supplier Sapura Industrial for front and rear axle assembly, in a project estimated at MYR 307 million over four and a half years. Sapura announced the agreement on November 4.
The agreement was signed by Sapura’s wholly owned subsidiary, Sapura Machining Corporation, and Chery Corporate Malaysia. It marks the Malaysian supplier’s first direct engagement with the Chinese automaker.
Sapura will assemble axle systems for selected locally assembled Chery vehicles at its facility in Bukit Beruntung, Selangor. The program covers internal-combustion, hybrid and battery-electric platforms, including the JAECOO J5 and models under the LEPAS brand.
The agreement expands Chery’s relationship with Malaysia’s automotive supply chain beyond vehicle assembly. Working with a local supplier requires coordination on production schedules, technical specifications and quality control as models enter the market.
For Sapura, the project adds a new automaker customer and supports its manufacturing and assembly business. The stated MYR 307 million value is an estimate over the agreement period, with actual work depending on the implementation of the vehicle programs.
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