Paragon Globe Bhd (PGB) has formed a strategic alliance with Shanghai-listed GSP Automotive Group, through its subsidiary GSP Automotive Malaysia Sdn Bhd, to establish an automotive industrial hub in Iskandar Puteri, Johor.
Along with GSP, the property developer is dedicating approximately 19.02 hectares of its prime 44.1-hectare Iskandar Puteri landbank to the creation of the fully integrated automotive supply chain hub.
Lee Ting Han, chairman of the State Investment, Trade, Consumer Affairs, and Human Resources Committee, stated that GSP has acquired approximately 2.19 hectares of land, as well as two leasehold plots measuring 3.43 hectares and 5.45 hectares, and that factory construction is expected to cost around RM141 million.
“Upon completion of the facility, I was briefed that GSP plans to further invest approximately RM188 million in advanced production equipment,” he said in his speech at the signing ceremony of the strategic partnership between the companies.
Also present were PGB executive chairman Datuk Seri Edwin Tan Pei Seng and GSP chief executive officer Richard Zhou.
According to Bernama, Lee said that, together with land investment, the initiative represents a multi-phase industrial commitment, with completion targeted by the end of 2027.
He emphasised that the initiative is expected to generate over 700 job opportunities.
“GSP, which is listed on the Shanghai Stock Exchange, is a globally recognised automotive component manufacturer with products sold in over 120 countries.
“This collaboration is important because global companies bring more than just factories; they bring networks, technology, and long-term partnerships,” Lee explained.
Tan added that the agreement lays the groundwork for the joint development of a specialised, automotive-focused industrial cluster (AutoPark).
“By anchoring this AutoPark with a globally recognised manufacturer like GSP, we are creating a powerful magnet for foreign direct investment, international suppliers, and technology investors, resulting in long-term value for our shareholders,” he stated.
According to Zhou, the project is anticipated to help Johor’s automotive industry cluster flourish and support talent development.
“GSP will continue to deepen its investment in Malaysia, working closely with partners and stakeholders to build a modern manufacturing base that contributes meaningfully to regional economic growth,” he declared.
