KUALA LUMPUR (July 26): Tan Chong Motor Holdings Bhd today announced the formation of a joint venture (JV) company in New York to allow the group to develop new distribution channels in the United States and Canada for exports from Southeast Asia.

The new company, Tan Chong Warisan Resources Management, is owned on a 51:49 basis by Tan Chong's wholly-owned unit TCMSC (Labuan) Pte Ltd and MAT (Labuan) Pte Ltd, a wholly-owned unit of Warisan TC Holdings Bhd.

In a filling with Bursa Malaysia, Tan Chong said the JV will also be involved in sourcing new products, ideas and technologies in the US and Canada which can bring value to the group.

It will also engage in identifying new business opportunities on exports to the US and Canada, and sourcing established brand products from the two countries for retail and distribution in Southeast Asia.

Tan Chong said TCMSC (Labuan) will provide the JV its experience, skills and expertise in the fields of automotive, trading, manufacturing, financing, information technology and renewable energy.

MAT (Labuan), meanwhile, will provide its experience, skills and expertise in fields of tour, travel, consumer products and industrial machinery.

Tan Chong said the establishment of the JV is not expected to have any material impact on its net assets, gearing and consolidated earnings per share for the financial year ending Dec 31, 2018.

However, the group expects the JV to bring positive contribution to its future earnings.

Tan Chong shares fell two sen or 1.31% to close at RM1.75 today, giving a market capitalisation of RM1.18 billion.