KUALA LUMPUR: Artroniq Bhd’s subsidiary Artroniq iTech Sdn Bhd has been awarded a RM100 million, two-year contract by American company Beno Inc for the assembly and finishing of the Reevo series of electric bicycles – marking its entry into the electric vehicle (EV) industry.
Artroniq executive director and CEO Kent Liaw Way Gian said it is taking over from another party whose Reevo e-bike assembly and finishing contract with Beno has ended.
“We are allocating RM5 million to buy a plant in Batu Kawan, Penang, with the assembly and finishing of the e-bike to start this February or March,” he said at a press conference after the signing of a memorandum of agreement witnessed by International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz tpday
Tengku Zafrul told reporters after the signing that the Ministry of International Trade and Industry (Miti) aims to attract RM20 billion in EV investments by 2025. The ministry also targets investments to rise to RM40 billion by 2030.
He said they need to look at the EV ecosystem holistically and discuss efforts to strengthen the industry, taking into account factors such as supply chain, software, technical, equipment and engineering expertise.
Liaw said Artroniq is targeting to do the assembly and finishing of 2,000 Reevo e-bikes each month with over 95% of the e-bikes exported to the United States and Europe.
The company is working closely with local authorities to obtain permits and licences for the electric bicycles. It is also interested in having the Malaysian police and district or city councils to use the electric vehicles, he added.
The CEO said the assembly and finishing of the electric bicycle is only the first stage of its collaboration with Beno.
“In the second stage, we intend to be the distributor of the Reevo e-bike in Southeast Asia as Beno also has the intention to develop its market-base in Southeast Asia. Then, in the third stage, in the second half of this year, we intend to work with Beno on the research and development of their electric motorcycles,” Liaw added.
The group believes there is a huge opportunity in the global electric bicycle market, with a compound annual growth rate of 10.5% over the next seven years and will reach US$40 billion (RM175 billion) by 2030.
Meanwhile, Artroniq (formerly known as Plastrade Technology Bhd), which is an investment holding company listed on the ACE Market of Bursa Malaysia, is not looking to diversify further and will focus on its two core businesses – information and communication technology and manufacturing.
Update:
In the latest development today (Jan 16), Artroniq said in a filing with Bursa Malaysia that it has received a confirmation on RM10 million worth of fund to be released within 30 days from Jan 16, 2023 by Beno, Inc for an order to assemble 7,000 bikes which are expected to be completed on or before June 30, 2023.
