KUALA LUMPUR (May 7): EG Industries Bhd said its subsidiary SMT Technologies Sdn Bhd will form a joint venture with Taiwan-based Quanta Storage Inc to undertake manufacturing works for Western Digital.

The manufacturing works will be extended for other customers in Malaysia and Thailand as well, the electronic manufacturing services provider said in a statement.

EG Industries said it will be injecting a capital contribution of RM1.96 million into the JV called TM SMT Sdn Bhd.

“This JV combines the expertise of both Quanta Storage and EG Industries to handle the wider requirements of Western Digital and other international customers,” said EG Industries chief executive officer Datuk Alex Kang.

“The JV also allows us to tap into the solid state drive market alongside our current coverage of hard disk drive and USB flash drive for Western Digital,” he said.

Kang added the JV is in line with the group’s intent to serve its customers holistically.

“We are able to provide vertical integrated services from design to box-build assembly, allowing the group to be a one-stop vertical integration solutions provider to local and international customers.

“More importantly, this JV company will allow EG Industries to leverage on Quanta Storage’s robotic automation technology in EGIB manufacturing facilities in Malaysia and Thailand which is in line with EG Industries’s vision to embrace Industry 4.0 practices,” he said.

EG Industries’ share price closed unchanged at 46 sen, for a market capitalisation of RM117.11 million.