PETALING JAYA: DRB-Hicom Bhd has entered into two memoranda of understanding (MoUs) for the purpose of developing and promoting an Automotive Hi-Tech Valley (AHTV) in Tanjong Malim, Perak.

       In separate announcements, the diversified group said it had signed an MoU with Zhejiang Geely Holding Group Co Ltd on Monday, and another MoU with the state government of Perak on Tuesday to promote the AHTV project.

       “The AHTV is aimed to be the next generation vehicle hub in Tanjong Malim.

       “It will cover extensive automotive and mobility solutions value chain from a full-fledged high-technology research and development centre to a manufacturing cluster, as well as supporting services and associated ecosystem including logistics, research university, training and learning institutions within a smart city,” DRB-Hicom said in its filing with Bursa Malaysia.

       It said its strategic cooperation with Geely and the Perak government would add value to DRB-Hicom.

       This is as it would become a strategic platform for both parties to explore means of collaborating towards the establishment of this comprehensive “Automotive City”.

       The development of the city is intended to bring extended multiplier-effects through the set-up of an automotive industry cluster in Tanjong Malim attracting investors and vendors from China and from other parts of the world, it added.

       The MoUs were to pave the way for further discussions and negotiations between the parties prior to the signing of any definitive agreement to effectuate the proposed strategic collaboration, it said.

       DRB-Hicom’s shares closed unchanged yesterday at RM1.48.

       DRB-Hicom said its MoU with Geely took effect on the date of the MoU and would expire after a period of six months, or any extended period to be mutually agreed by both parties; or expire on the date of the execution of the definitive agreements; or terminate if the parties mutually agree in writing to terminate the MoU, whichever is earlier.

       Its MoU with the Perak state government would expire after a period of two years.

       DRB-Hicom said this MoU could be terminated by either party by giving not less than three months written notice to the other party.