KUALA LUMPUR: Hong Seng Consolidated Bhd
has mutually terminated its share sale agreement (SSA) with CSH Alliance Bhd (CSH) for the proposed acquisition of Alliance EV Sdn Bhd (AEV).
Despite the termination, Hong Seng remained keen on the electrification revolution by choosing to focus on its electric vehicle (EV) batteries manufacturing project (Project Volt) in collaboration with EoCell Inc from the United States.
Hong Seng had announced, on Feb 13, its intention to acquire AEV for the 55-acre Tanjung Malim land held by the company as well as its EV business, which may complement its Project Volt initiative.
The acquisition, subjected to conditions precedent of the SSA, includes a feasibility study to be carried out by Hong Seng to assess the suitability of the Tanjung Malim land for Project Volt.
Hong Seng said the key findings of feasibility study revealed that the Tanjung Malim land was strategically located within proximity and region of a mature industrial estate, adjacent to Proton City and accessible to major infrastructure roads providing an advantage for industrial activities and/or assembly plant-based manufacturing industries,
“The Tanjung Malim land is very strategically located, however, the existing conditions of the land terrain inflicted some restrictions for Hong Seng which impedes its intention to carry out both Project Volt and Project EV in its ideal size and our future expansion plans,” Hong Seng executive director Lestin Chin said in a statement.
“The group envisions the development of a regional manufacturing hub in Malaysia, to produce batteries for EV and progress to power storage solutions which will eventually be supplied to EV manufacturers, assemblers and users in the South-East Asian region,” he added.
Chin said Hong Seng would ensure that its plans are implemented cautiously in compliance with the stringent standards and requirements for batteries manufacturing and its related industries.
Riding on the positive global outlook of the global EV battery market, which is projected to reach US$134.6bil (RM592.3bil) by 2027, the group remained committed to make Project Volt a success with the support from the government.
“Hong Seng aims to be one of the best EV battery manufacturers given EoCell’s proprietary technology which achieved disruptive breakthroughs for EV batteries in Silicon-based anode and non-flammable electrolyte.”
