Malaysian automotive component manufacturer, Sapura Industrial Berhad (SIB), has announced a joint venture with China’s Zhejiang Zhongze Precision Technology Co. Ltd (ZZ Tech) to produce battery components. More specifically, the team up focuses on the production of “high-precision storage battery casings”.
This joint venture marks the entry of SIB into the energy storage and battery sector, with the company saying that it’s also a major milestone in its diversification strategy. Similarly, it allows ZZ Tech to establish its presence in Malaysia, leveraging SIB’s precision manufacturing capabilities and understanding of the local market.
To that end, company subsidiary SIB Ventures will support the joint venture company (JVC) by handling corporate, licensing, environmental, and regulatory matters, as well as assisting in identifying a suitable site for the plant. ZZ Tech, on the other hand, will contribute machinery, technical expertise, training, and ongoing customer support.
NST reports that the JVC will set up a precision component manufacturing plant in Malaysia, with an initial investment of RM18 million. The proposed JVC will be jointly owned by SIB Ventures (51%) and ZZ Tech (49%), with both parties funding the paid-up capital in proportion to their shareholdings.
(Source: SIB Press Release, NST)
