Sapura Industrial secures RM307 million Chery axle assembly programme, includes Jaecoo J5 and Lepas

Sapura Industrial Berhad has secured its first direct programme with Chery, covering the assembly of front and rear axle systems for selected vehicles, including the Jaecoo J5 and models under the Lepas brand.

The contract has an estimated value of RM 307 million over 4.5 years. It follows the signing of a Master Purchase Agreement between Sapura Industrial’s wholly owned subsidiary, Sapura Machining Corporation, and Chery Corporate Malaysia.

The programme spans internal combustion engine (ICE), hybrid electric vehicle (HEV) and battery electric vehicle (BEV) platforms, giving the Malaysian supplier a role across several parts of Chery’s vehicle portfolio.

Assembly work will take place at Sapura Industrial’s new facility in Bukit Beruntung, Selangor. The agreement adds Chery to the group’s direct customer base while supporting the carmaker’s efforts to expand its Malaysian supply chain.

For Sapura Industrial, the project builds on more than four decades in the automotive sector. Its existing operations cover precision machining, suspension systems and automotive assemblies, alongside advanced manufacturing capabilities.

Managing director Datuk Syed Izuan Syed Kamarulbahrin described the agreement as a milestone for the company, saying it reflected confidence in both Malaysia’s automotive supply chain and the capabilities of local engineering partners.

He added that the partnership would support Chery’s localisation objectives and contribute to the development of the Malaysian automotive industry.

The agreement also complements Chery’s investment in local manufacturing and supplier development as it expands across Malaysia and the wider ASEAN region.

Chery Corporate Malaysia vice president Mr Cheng said capable local partners were central to the company’s regional plans. He cited Sapura Industrial’s technical expertise, responsiveness and quality-focused execution as reasons for confidence in the partnership.

Beyond this contract, Sapura Industrial plans to continue developing its capabilities across combustion-engine, hybrid and fully electric vehicle programmes, supported by investment in manufacturing technology, engineering and workforce training.