KUALA LUMPUR (March 1): Sabah-based timber manufacturer Priceworth International Bhd said its subsidiary has been appointed as a distributor of bus products by China's second largest bus manufacturer Higer Bus Company Ltd.

The subsidiary, Maxland Auto Sdn Bhd, will distribute and assemble Higer bus products in Sabah and Sarawak, said Priceworth, adding that the contract is for a three-year period.

Higer has annual sales of US$1.39 billion (RM6.6 billion) and operates in over 100 countries worldwide, said Priceworth in a bourse filing on Friday.

Maxland Auto is engaged in manufacturing and assembling energy efficient vehicles (EEVs), electric vehicles (EVs) and supported infrastructures such as charging stations.

The company will be investing in a manufacturing plant in Sandakan, Sabah that will be fully operational by 2025, said Priceworth in a separate statement.

“We are currently applying for a manufacturing licence from the Malaysia Industrial Development Authority (Mida) and other necessary approval from the state of Sabah,” the group said.

To achieve full operational capabilities, Maxland Auto is partnering with GoAuto Group of Malaysia, a green vehicle manufacturer and assembler in Gurun, Kedah, which has also secured distribution rights for EEV and EV commercial vehicles under the principal and original equipment manufacturer (OEM) for Higer brand.

Under the agreement, Higer and GoAuto will contribute in technology transfer and technical expertise for the manufacturing facilities, while Maxland Auto will concentrate on the distribution and sales to identified markets.

“Our immediate and initial objective is to reduce Sabah’s carbon footprint and increase carbon credit value by providing EV buses and vans for replacement of existing ageing fossil fuelled public transport fleet operating in major cities of Sabah. Subsequently, our plan is to expand our market to other parts of Borneo, serving both government and private entities alike,” said Priceworth.

Priceworth’s shares closed half a sen or 4.76% lower at 10 sen on Friday, with a market capitalisation of RM153.07 million. The counter has fallen 28.57% so far this year.