On May 25, Toyota, in order to strengthen their competitiveness in the Malaysian market, announced that they would be reorganizing their production system in a manner where their new facility, a factory specializing in producing passenger vehicles, would figure as the core of this restructuring.
Of the opinion that the Malaysian market will begin to see a general expansion in the future, this restructuring will be carried out by the joint venture company UMW Toyota Motor (UMWT) through their subsidiary automotive production company Assembly Services (ASSB). The current plant that produces both passenger as well as commercial vehicles will, beginning in 2019, cease production of passenger vehicles and build a new facility for the specific production of passenger vehicles in Klang, Selangor.
The amount of money to be invested in this new facility will be Â¥490,000,000 (approximately $4.5 million USD). New, innovative production technologies such as their flexible line and compact painting booths that the company utilizes at their Mexico plant and on their new Chinese line will be introduced and the company plans to be running at a rate of 50,000 vehicles produced over the course of their first year in 2019.
However, the current production plant that began its life in 1968 with CKD (complete knock down) production of Coronas and Corollas, along with being converted over to only producing commercial vehicles, through optimization of machining techniques and logistics in terms of the size of the vehicles that are being produced, are also aiming to improve their productivity.
[Translated by Bryce Clarke]