KUALA LUMPUR, 15 April 2023 – Hong Seng Consolidated Berhad (“Hong Seng” or “the Group”) today reiterated that the Group remains keen on the electrification revolution by choosing to focus on its EV batteries manufacturing project (“Project Volt”) in collaboration with EoCell Inc (USA) (“EoCell”) despite the mutual termination of the Shares Sale Agreement (“SSA”) between Hong Seng and CSH Alliance Berhad (“CSH”) for the proposed acquisition of Alliance EV Sdn Bhd (“AEV”).
Hong Seng had previously on 13 February 2023 announced that its intention to acquire AEV for the purposes of acquiring the 55 acres Tanjung Malim Land held by AEV as well as AEV’s EV business which may complement its Project Volt initiative, subject to Conditions Precedent of the SSA which included amongst others a feasibility study to be carried out by Hong Seng to assess the suitability of the Tanjung Malim Land for the purpose of the Project Volt (“Land Feasibility Study”). Hong Seng had plans to utilise the 55 acres land for Project Volt and AEV’s Project EV to set up an EV batteries manufacturing plant and a local EV assembly plant respectively equipped with shared facilities and infrastructure.
The key findings of the Land Feasibility Study revealed that the Tanjung Malim Land is strategically located within proximity and region of a mature industrial estate, adjacent to Proton City and conveniently accessible to major infrastructure roads provides a major advantage to the land development appropriate 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 development plans. The Group envisions the development of a regional manufacturing hub in Malaysia, to manufacture batteries for EV and progress to power storage solutions which will eventually be supplied to EV manufacturers, assemblers, users in the Southeast Asian region.
After further deliberation and subsequent internal discussions with EoCell, we will continue to actively identify and source for another suitable land to accommodate future development which includes land allocations for the other supporting industries to set up their businesses in the same area,” explained Lester Chin, Executive Director of Hong Seng.
He also added that Hong Seng will ensure that its plans are implemented cautiously in compliance with the stringent standards and requirements for batteries manufacturing and its related industries even if it will take a longer period of time to determine a suitable land and location.
Riding on the positive global outlook of the global EV battery market, which is projected to reach USD 134.6 billion by 2027, the Group remained committed to make Project Volt a success with the much-needed 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.
