KUALA LUMPUR (March 9): EITA Resources Bhd's subsidiary EITA-Schneider (Mfg) Sdn Bhd has entered into a joint venture with Shanghai STEP Electric Corporation to provide elevator control systems to meet growing demand across Asean and the Middle-East regions.
 
In a filing with the local bourse today, EITA Resources (fundamental: 1.7; valuation: 1.2) said a new joint venture company will be formed between EITA-Schneider and Shanghai STEP each holding 50% equity interest in the JV upon execution of the proposed partnership.
 
According to the group, the JV company shall be known as SIGRINER Automation (Mfg) Sdn. Bhd with an initial authorised share capital of RM5 million and the initial issued and paid-up share capital of RM1 million.
 
Under the JV, the core activities will be to design and manufacture elevator control systems and related accessories, and energy efficient elevator equipment.
 
The filing said the Southeast Asia and Middle-East elevator demand is estimated to be around 75,000 units of elevators a year with promising growth as the Asean Economic Community opens its doors from 2015 onwards.
 
Commenting on the JV, EITA's group managing director Fu Wing Hoong said, “Our partnership bring forth each organisation’s strong commitment with synergies in market expansion, research and development (R&D) and product innovation, and cost efficiency to address the burgeoning regional markets.”
 
 
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)