KUALA LUMPUR (March 21): SMTrack Bhd has inked a memorandum of understanding (MoU) with Proemion GMBH to obtain the right to distribute the latter's products within Southeast Asia.

Proemion, a company incorporated and based in Germany, is an international supplier of telematics systems and CAN-Bus system components.

In a bourse filing today, SMTrack said the MoU is part of its plan to venture into new business activities abroad and thus, enhance its operations and revenue, adding that Proemion's business is also in line with SMTrack's, especially in the tracking system.

"The rationale for entering into the MoU is to leverage on the growth in Southeast Asia market, mainly in the plantation and food base, with wide usage of machineries and equipment, which in turn will provide huge market potential [to] PROEMION's products and services," said SMTrack.

The radio frequency identification (RFID) solution specialist added that it will benefit from the expertise and technical know-how of Proemion as it is an established company with more than 20 years' experience.

Under the MoU, aside from the right to marketing and distributing the products in Southeast Asia, including the provision of after-sales and consulting services, SMTrack shall be responsible for the installation of all service centres to monitor vehicle and machinery locations, as well as the setting up of the requisite data centre.

In return, Proemion shall supply the products and services to SMTrack, which are to fulfil SMTrack's orders and service requirements from its customers.

Proemion shall also provide all technical support and assistance, and training necessary to SMTrack's staffs to sell, operate and maintain Proemion's products with reasonable care and skill.

Shares in SMTrack closed lower by 0.5 sen or 6.25% at its three-month low of 7.5 sen today, valuing it at RM25.58 million.