PETALING JAYA: Pecca Group Bhd ’s 60% subsidiary Pecca Aviation Services Sdn Bhd has entered into a joint development agreement with Singapore-based AirGo Design Pte Ltd (AirGo) to develop aircraft seat covers for the Langkawi International Maritime and Aerospace Exhibition 2017 (Lima 2017).
In a filing with Bursa Malaysia yesterday, Pecca said that the agreement has commence this month and would expire on March 19, 2019.
It said that under the agreement, Pecca would provide an advisory role on the required technical, construction and know-how support for the development of AirGo’s designed seats for Lima 2017.
“Pecca Aviation shall undertake construction of two model sets for Lima 2017 for AirGo,” it said.
On the rationale of the joint development, Pecca said that the agreement would leverage on AirGo’s seat technology and design, while tapping on Pecca’s knowledge and experience in engineering and manufacturing of upholstery seat cover to produce the aircraft seat, known as “Mark 1”.
“Mark 1” will be displayed at the air show and Pecca will endeavour to secure more seat manufacturing contracts at the show.
“The directors hope that the agreement with AirGo will lead to future aviation leather upholstery supply contract from Pecca Aviation to AirGo,” Pecca said.
It said that the joint development agreement would not have any material effect on the net assets per share and gearing of the group for the financial year ending June 30, 2017.