KUALA LUMPUR (Aug 27): Wah Seong Corp Bhd (WSC) has teamed up with Japan's Saito Separator Ltd to manufacture accessories and equipment under the Saito brand for disc bowl centrifuge and decanters for the palm oil industry.
WSC said the partnership forms part of the group's strategy to become a one-stop process equipment provider for the palm oil sector. Joint development and manufacturing with a foreign technology provider is key to achieve this goal, it said.
In a filing with Bursa Malaysia today, WSC said its indirect wholly-owned subsidiary PMT Industries Sdn Bhd (PMTI) has entered into an agreement with Saito to form a joint venture (JV) company known as PMT Saito Sdn Bhd to undertake the businesses.
"The board of directors of the new JV company will comprise [of] up to five directors, of whom three will be nominees of PMTI and two from Saito. The chairman of the board will be elected by the directors nominated by PMTI," it added.
Under the JV, Saito will supply to the new JV company, key components that are required for the business, as well as provide technical advisory services and expertise as may be necessary.
Saito will also procure products from Malaysia to Japan and vice-versa through the new JV company for sales and distribution.
PMTI, meanwhile, will provide management services including administrative, human resources, procurement and finance input/expertise to the new JV company, as well as assist in the procurement of components from the local market.
"Going forward, results from the JV are expected to enhance the future earnings of WSC Group," the filing said.
WSC shares closed down five sen or 3.91% at RM1.23 today, giving it a market capitalisation of RM949.74 million.