KUALA LUMPUR (March 26): Automotive components manufacturer and assembler Sapura Industrial Bhd has entered into a shareholders' agreement with two Japanese aerospace companies to diversify into the manufacturing and assembling of aerospace components for the Malaysian and global markets.

Sapura Industrial together with Wada Aircraft Technology Co Ltd and Aero Inc had on March 15 this year incorporated Sapura Aerospace Technologies Sdn Bhd.

In a statement today, Sapura Industrial said Sapura Aerospace will build a high technical facility over a five-acre site in the Greater Klang Valley area with an investment of up to RM100 million in the next five years for facilities and machineries.

Prime Minister Tun Dr Mahathir Mohamad witnessed the exchange of the shareholders' agreement at the ongoing Langkawi International Maritime and Aerospace Exhibition (LIMA) 2019.

Sapura Industrial said the agreement represents a synergistic collaboration between the three companies in incorporating Sapura Aerospace, which will provide manufacturing and assembly services of aerospace components, sub-assemblies, tooling, jigs and fixtures, for the aerospace industry in Malaysia, Japan and globally.

It said Sapura Aerospace will benefit from the aggregated and combined resources of the three shareholders which will bring together 110 years of manufacturing experience, a 1,500-strong team, and the operations of 11 aerospace facilities.

It will synergistically and quickly deploy the expertise of these three companies in various areas of aerospace manufacturing, business management, customer reach and deliverability.

Sapura Industrial said the joint venture company is among the first Malaysian companies offering specialised and focused suit of services, particularly in high-value chain aircraft assembly and machining works, to Malaysian, Japanese, regional and envisioned global potential customers.

It said these potential customers include original equipment manufacturers (OEMs) and Tier 1 suppliers, such as Airbus and Boeing.