Hulu Selangor Gets Two New Plants: EPMB's RM100m Fuel Tank Factory in Batang Kali and NovaAir in Serendah
EPMB and Hebei Shichang will build a RM100 million plastic fuel tank plant in Batang Kali to supply Proton from March 2027, while NovaAir opened a 300 tonnes-per-day industrial gas plant in Serendah. What it means for factory buyers and tenants in Hulu Selangor.
Looking to buy or rent a factory?
- Peter TanREN 12771 · 016-666 6872
Key Takeaways
- EP Manufacturing (EPMB) and Beijing-listed Hebei Shichang Auto Parts will invest RM100 million in a plastic fuel tank plant at EPMB's manufacturing hub in Batang Kali, Selangor, with capacity of 200,000 tanks a year.
- The plant is scheduled to start supplying Proton's Tanjung Malim facility in March 2027. EPMB holds 51% of the joint venture and Hebei Shichang 49%.
- In the same week, NovaAir, the Malaysian arm of China's Yingde Gases, inaugurated a 300 tonnes-per-day liquid air separation unit at UMW High-Value Manufacturing Park in Serendah, making oxygen, nitrogen and argon for local industry.
- Both projects sit in Hulu Selangor, the corridor between Rawang and Proton's Tanjung Malim base, where JPPH-registered industrial land in the Serendah area changes hands at a median of RM35 psf of land.
- For auto suppliers and other manufacturers, the area offers cheaper land and rent than the Klang Valley core, but buyers should check power capacity, truck access and labour before committing.
What happened
On 9 October 2026, EP Manufacturing Bhd said its wholly owned subsidiary Fundwin Sdn Bhd had signed a joint venture agreement with Beijing-listed Hebei Shichang Auto Parts Co Ltd to set up EP Shichang Automotive Systems Sdn Bhd (The Edge). The partners will invest RM100 million in a new plastic fuel tank plant at EPMB's manufacturing hub in Batang Kali, Selangor. Phase one will have an annual capacity of 200,000 units and is scheduled to begin supplying Proton's Tanjung Malim plant in March 2027.
EPMB holds 51% of the venture and Hebei Shichang 49%. Fundwin handles local operations, financing, government relations and compliance, while Hebei Shichang brings the manufacturing process, testing, quality control and training for technical staff. The partners will also look at localising other components, including thermal coolant tanks for new energy vehicles. The agreement runs for 30 years. According to AutoBuzz, Hebei Shichang's customers in China include Geely, Chery, BYD, SAIC, FAW, Changan and BAIC.
On 13 October 2026, NovaAir Industrial Gases Sdn Bhd, the Malaysian subsidiary of Yingde Gases, inaugurated its 300 tonnes-per-day liquid air separation unit at UMW High-Value Manufacturing Park (MIDA; Malay Mail). The park is in Serendah. The plant was commissioned in August 2026 and produces oxygen, nitrogen, argon and high-purity oxygen for chemicals, electrical and electronics, oil and gas, food processing, steelmaking and lithium battery production. NovaAir aims to lift the plant's utilisation above 90% within two years, and Yingde Gases plans to expand its Malaysian investment over the next three to five years. MIDA and Invest Selangor attended the launch.
Why it matters
Both projects point to the same stretch of northern Selangor. Batang Kali and Serendah sit in the Hulu Selangor district, on the way from Rawang to Tanjung Malim, where Proton's main plant is. As Proton widens local sourcing for its newer models, suppliers that need to deliver parts on a tight schedule have a reason to locate within trucking distance of Tanjung Malim.
A local supply of industrial gases also matters for factories. Metal fabrication, welding, food processing and electronics all use oxygen, nitrogen or argon. Having a large liquid gas plant in the same district can shorten delivery and support more manufacturers moving into the parks around it.
There is a counterweight. Budget 2027, tabled on 9 October, offers wholly Malaysian-owned automotive vendors a tax deduction of up to RM5 million on qualifying costs of relocating to the Automotive Hi-Tech Valley in Tanjong Malim, for spending from 1 January 2027 to 31 December 2030 (The Edge, Budget 2027 speech). That pulls some suppliers across the state line into Perak, while companies like EPMB build on the Selangor side.
What the registered data shows
JPPH-registered transactions for the Serendah area, which includes the busy Bukit Beruntung industrial park, show 153 industrial deals worth RM512.24 million in the 12 months to July 2026. Over 24 months:
| Type | Median price | Median psf of land |
|---|---|---|
| Terrace factory (268 deals) | RM250,000 | RM115 psf of land |
| Semi-detached factory (29 deals) | RM3.16 million | RM201 psf of land |
| Detached factory (8 deals) | RM7.75 million | RM139 psf of land |
| Industrial land (69 deals) | RM2.52 million | RM35 psf of land |
Registered factory rents in the area have a median of RM0.95 psf per month across 28 tenancies. For comparison, the median for industrial land across Selangor and KL in the same data is RM69 psf of land, and the median factory rent is RM1.52 psf per month. The full breakdown is on our Serendah transaction prices and rents page.
What it means for factory owners, tenants and buyers
Auto parts and component makers. If Proton's Tanjung Malim plant is your main customer, Batang Kali, Serendah and Bukit Beruntung keep you in Selangor while cutting the trip to the assembly line. Compare that with the Perak relocation deduction if your company is wholly Malaysian-owned.
Manufacturers that need space more than location. Land and rents in Hulu Selangor are well below the Klang Valley core. Large plots for a purpose-built plant are easier to find than in Shah Alam or Klang.
Tenants. The rental base is thin: only 28 registered factory tenancies in 24 months. Good units do not come up often, so start looking early and be ready to sign quickly when the right one appears.
Investors. New anchor plants can lift demand around them over time, but prices respond slowly. Buy on today's demand, not on announcements.
Practical next steps
- Ask TNB early about the power supply available at the site. A plastics or metal plant may need a substation, which takes land and time.
- Drive the truck route to your customer and to the port at peak hours before you commit.
- Check the local labour pool and whether you will need hostels or transport for workers.
- Confirm the land title is industrial and the zoning fits your process before you sign. Our Batang Kali industrial property page covers the local market.
- Compare land for sale in Serendah with ready-built factories, taking approval time into account.
FAQ
Where will the EPMB and Hebei Shichang fuel tank plant be?
At EPMB's manufacturing hub in Batang Kali, Selangor. Phase one has an annual capacity of 200,000 plastic fuel tanks.
When will it start supplying Proton?
The plant is scheduled to begin supplying Proton's Tanjung Malim facility in March 2027.
What does the NovaAir plant in Serendah produce?
Oxygen, nitrogen, argon and high-purity oxygen, at a capacity of 300 tonnes per day, for industries including chemicals, electronics, food processing, steelmaking and lithium battery production.
How much does industrial land cost around Serendah?
JPPH-registered transactions show a median of RM35 psf of land for industrial land in the Serendah area over the 24 months to July 2026, based on 69 recorded deals.
Is there a tax incentive for auto suppliers to move closer to Tanjung Malim?
Budget 2027 proposes a tax deduction of up to RM5 million for wholly Malaysian-owned automotive vendors relocating to the Automotive Hi-Tech Valley in Tanjong Malim, for costs incurred from 1 January 2027 to 31 December 2030.
FactoryHub is dedicated to helping every client find the right factory or warehouse. If you are looking at Hulu Selangor for a new plant or warehouse, call Peter Tan (REN 12771) at 016-666 6872 or Jason Low (PEA 1478) at 012-288 1834.
Tags
Focused on Malaysia industrial real-estate research and transactions across the Klang Valley and Nilai corridors. Every article is grounded in our own deal flow and licensed-agent sources.
All articles by Peter Tan →