German sports car maker Porsche will from next year build vehicles for the Malaysian market at its first factory outside Europe.
In a statement released on Monday, the iconic fast car manufacturer said the plant "will be responsible for the final assembly of specific models for the local market from 2022 onwards" and "will operate alongside Porsche's established European network of production sites."
The cars will be built by Sime Darby, which began assembling cars locally in 1982 for BMW and Land Rover, and has since added brands such as Hyundai and Mazda.
Porsche said the arrangement will help strengthen its position "in the emerging markets of Southeast Asia."
Malaysia is South-east Asia's third-wealthiest economy, measured per capita, and has for decades been a hub for manufacturing of cars, electronics and medical products.
Sime Darby, a sprawling Malaysian conglomerate with health, logistics and insurance wings, has partnered with Porsche for more than a decade as its local distributor.
"We are pleased to extend our relationship with Porsche from retail and distribution to include assembly," said Sime Darby CEO Jeffri Salim Davidson.
"Every Porsche assembled by Sime Darby will go through the same rigorous standards and processes as its European counterparts," Davidson added.
Porsche on Monday also announced a new research and development facility for Shanghai.
