KUALA LUMPUR (Dec 1): EP Manufacturing Bhd has tied up with Japan's Y-tec Corp to supply automotive parts to Mazda Malaysia Sdn Bhd (Mazda Malaysia).
In a filing with Bursa Malaysia today, the tier-one automotive systems and components manufacturer said its unit Peps-JV (M) Sdn Bhd has entered into a conditional shareholders' agreement (SA) with Y-tec for the establishment of a joint venture (JV) company.
"The JV company will be the vehicle for the proposed JV to supply automotive parts to Mazda Malaysia," said EP Manufacturing.
The products will be manufactured by Peps-JV (Kedah) Sdn Bhd, another wholly-owned subsidiary of the company.
EP Manufacturing said Peps-JV will hold a 60% equity stake in the JV company that is yet to be established, while the remaining 40% will be controlled by Y-tec.
Y-tec is involved in the development, manufacturing and sale of sheet metal parts and chassis parts of various automobiles and also manufactures and assembles the parts. It is one of the tier-1 suppliers of Mazda Motor Corp's model parts in Japan.
EP Manufacturing said the proposed JV is a strategic partnership that will expand its existing customer base to include Mazda Malaysia, one of the top five automakers in Malaysia.
"The proposed JV is expected to boost the group's manufacturing capacity and product diversification and allow the group to create greater economic value and increase potential earnings," it added.
Barring any unforeseen circumstances, EP Manufacturing expects the JV to be completed in four months from the date of the SA.
Shares in EP Manufacturing closed unchanged at 72 sen today, for a market capitalisation of RM113.86 million.
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