Bukit Beruntung Factory to Assemble Chery Axles: Sapura Industrial's RM307m Deal and What It Means for Northern Selangor Industrial Space
Sapura Industrial signed a master purchase agreement with Chery on 4 November 2026 to assemble front and rear axles at its new plant in Bukit Beruntung, Selangor, worth about RM307 million over 4.5 years. Here is what it means for factory owners, tenants and buyers in the Rawang, Serendah and Bukit Beruntung belt.
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Key Takeaways
- On 4 November 2026, Sapura Industrial Bhd's unit Sapura Machining Corporation Sdn Bhd signed a master purchase agreement with Chery Corporate Malaysia Sdn Bhd to assemble front and rear axles at a plant in Bukit Beruntung, Selangor.
- The project is expected to bring in about RM307 million in revenue over 4.5 years, subject to actual deliveries, for an investment of up to RM3.6 million. It covers petrol, hybrid and battery electric models, including the Jaecoo J5 and Lepas vehicles.
- It is the Bangi-based parts maker's first direct contract with Chery. In July it agreed to sell 40,964 sq m of Bangi industrial land for RM42.33 million and set aside RM12 million for land or properties for new plants closer to customers.
- Bukit Beruntung is the most active industrial park in FactoryHub's JPPH-registered data for Hulu Selangor, with 132 recorded deals in 24 months, and industrial land in the area changes hands far below Bangi levels.
- For owners and tenants in the Rawang, Serendah and Bukit Beruntung belt: carmaker localisation brings parts makers who need ready buildings quickly. Know your power supply, floor loading and approvals before they call.
What happened
In a Bursa Malaysia filing dated 4 November 2026, Sapura Industrial Bhd said its wholly owned subsidiary Sapura Machining Corporation Sdn Bhd (SMC) had executed a master purchase agreement with Chery Corporate Malaysia Sdn Bhd "for the assembly of front and rear axle at a plant in Bukit Beruntung, Selangor". SMC has secured two letters of award for selected vehicle programmes.
The filing puts the start of the project in the second half of the company's financial year ending 31 January 2027. Sapura Industrial expects total revenue of approximately RM307 million over a 4.5 year period, subject to actual deliveries, with an expected investment cost of up to RM3.6 million.
The Star reported that the axles are for Chery's internal combustion engine, hybrid and battery electric platforms, including the Jaecoo J5 and vehicles under the Lepas brand, and that the work will be carried out at Sapura Industrial's new facility in Bukit Beruntung. The Edge noted that this is the company's first direct engagement with the Chinese carmaker. Sapura Industrial already makes parts such as brake components for Perodua and Toyota.
Managing director Datuk Syed Izuan Syed Kamarulbahrin said the deal "underscores the confidence global automotive manufacturers place in Malaysia's automotive supply chain". Chery Corporate Malaysia vice-president Cheng Namweng told The Edge that Malaysia plays a key role in Chery's regional plans, "with capable local partners remaining central to our strategy". According to paultan.org, the company said the Bukit Beruntung facility will reinforce the group's presence in one of Malaysia's key automotive hubs.
The Bangi land sale earlier this year
Sapura Industrial's head office is in Bandar Baru Bangi. In early July 2026, The Edge reported that the company was selling 40,964 sq m of leasehold industrial land in Bandar Baru Bangi to Zeito Plastic Components Sdn Bhd for RM42.33 million cash. The price was above an independent valuation of RM40.6 million and gave a one-off net gain of RM29.14 million. The titles run to July 2103, and parts of the land were leased out.
The company earmarked RM23.12 million of the proceeds to expand its manufacturing, machining and assembly lines, RM12 million to buy land or properties for new plants closer to customers, and RM3.11 million for working capital. It has not said publicly whether the Bukit Beruntung plant is one of those new sites, so read the two announcements side by side rather than as one plan.
Why Bukit Beruntung matters
Bukit Beruntung sits in Hulu Selangor, just north of Rawang, on the corridor that runs up through Serendah and Batang Kali towards Tanjong Malim, where Proton builds cars. Industrial land there is cheaper than in the older estates closer to Kuala Lumpur, and the registered data shows how wide the gap is.
In FactoryHub's JPPH-registered transaction data for the Serendah area, which covers Bukit Beruntung, Bukit Beruntung is the most active industrial park, with 132 recorded deals in the 24 months to August 2026. Medians for the area over those 24 months:
| Type | Median price | Per sq ft of land |
|---|---|---|
| Terrace factory | RM245,000 | RM114 psf of land |
| Semi-detached factory | RM3.16 million | RM213 psf of land |
| Detached factory | RM8.65 million | RM166 psf of land |
| Industrial land | RM2.47 million | RM37 psf of land |
The median registered factory rent in the area is RM0.95 psf a month, from 30 tenancies. In the Kajang, Balakong and Bangi data, industrial land has a median of RM139 psf of land and the median factory rent is RM1.55 psf a month, from 206 tenancies. These are place comparisons, not price changes over time, and every sale figure is per sq ft of land, not built-up area.
What it means for factory owners, tenants and buyers
Chery and Sapura Industrial both describe the deal as part of Chery's investment in local manufacturing capacity and supplier development. Localisation of this kind brings work for parts makers, and that work has to happen somewhere, often in an existing building that can be fitted out fast. The investment figure in this filing, up to RM3.6 million, is small next to the cost of a new factory, which points to equipment and fit-out rather than construction. When a supplier wins a contract with a fixed start date, the building often has to be ready within months.
If you own a factory in the northern belt
Automotive tenants ask detailed questions, and owners who can answer them quickly are in a stronger position. Have these ready in writing:
- TNB supply in amps today, and whether an upgrade has been applied for or is possible
- Floor loading, clear height and any crane beams or crane provision
- Loading bays, gate width and turning space for long trailers
- Certificate of completion and compliance (CCC or CF), industrial zoning and the Bomba fire certificate
- Title details: freehold or leasehold, remaining lease and any restrictions in interest
If you rent
A supply contract like this one runs for a set period, here 4.5 years. Try to match your lease to the contract: a main term plus an option to renew, a clear clause on who pays for a power upgrade, and a reinstatement clause you can live with when you leave. A lease that ends a year before your contract does is a problem you can avoid at signing.
If you are buying
The gap between Bangi and Bukit Beruntung land prices is large, but price is only one line. Check the remaining lease, flood history, access for trailers, travel time for staff and what the local council allows on the lot. Compare like with like: a terrace factory median tells you nothing about a detached unit.
Practical next steps
- Owners in Bukit Beruntung, Rawang and Serendah: prepare a one-page spec sheet with power, loading, height and approvals, and keep copies of the TNB bill and CCC on hand.
- Tenants with a customer contract: share its term with your agent so the lease can be shaped around it.
- Buyers: look at the registered prices for the same factory type before you make an offer.
- See what is available now on our Bukit Beruntung industrial agent page, or send your requirement once through Find Me a Factory.
Frequently Asked Questions
Where will Sapura Industrial assemble axles for Chery?
At a plant in Bukit Beruntung, Selangor, run by its subsidiary Sapura Machining Corporation Sdn Bhd. The Star and The Edge describe it as Sapura Industrial's new facility there. The company's head office is in Bandar Baru Bangi.
How much is the Sapura Industrial and Chery contract worth?
Sapura Industrial expects revenue of approximately RM307 million over 4.5 years, subject to actual deliveries. The expected investment cost is up to RM3.6 million. Work is due to start in the second half of its financial year ending 31 January 2027.
Which Chery models are covered?
The agreement covers front and rear axle systems for Chery's petrol, hybrid and battery electric platforms. The Star named the Jaecoo J5 and vehicles under the Lepas brand.
Did Sapura Industrial sell its Bangi land?
In July 2026 it agreed to sell 40,964 sq m of leasehold industrial land in Bandar Baru Bangi to Zeito Plastic Components Sdn Bhd for RM42.33 million cash. It set aside RM12 million of the proceeds for land or properties for new plants closer to customers. It has not said whether Bukit Beruntung is one of them.
What do factories in Bukit Beruntung cost?
In FactoryHub's JPPH-registered data for the Serendah area, which includes Bukit Beruntung, the 24-month median for a semi-detached factory is RM3.16 million (RM213 psf of land) and for a detached factory RM8.65 million (RM166 psf of land). Industrial land has a median of RM37 psf of land. These are recorded deals up to August 2026, not asking prices.
FactoryHub is dedicated to helping every client find the right factory or warehouse. If you own, rent or are looking for a factory in Bukit Beruntung, Rawang or Serendah, call or WhatsApp Jason Low (PEA 1478) on 012-288 1834 or Peter Tan (REN 12771) on 016-666 6872.
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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.
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