PETALING JAYA: Enamelled copper wire and rod manufacturer Ta Win Holdings Bhd is set to expand its production capacity and manufacture high-margin products, following its latest partnership to make cables using electron beam irradiation technology in Malaysia.
The loss-making company told the stock exchange yesterday that its wholly owned subsidiary, Cyprium Capital Sdn Bhd, had inked a joint-venture (JV) agreement with Justin Wong Chee Feng, Wong Ah Piaw and Latitude Technology Sdn Bhd to set up a new cable-manufacturing business in the country.
A special-purpose vehicle (SPV), namely, Cyprium Wire Technology Sdn Bhd, will be incorporated on a later date for the JV. A total of RM15mil is expected to be invested in the SPV by all the parties.
Ta Win’s Cyprium Capital will control 80% of the SPV and will fund its participation in the strategic partnership via internally generated funds.
“The proposed JV is not expected to have an immediate material effect on the earnings, net assets and gearing of Ta Win for the financial year ending June 30, 2019.
“However, the proposed JV is expected to contribute positively to the future earnings of Ta Win. The proposed joint venture does not require approval from the shareholders of Ta Win or any relevant authorities,” stated the company in its Bursa Malaysia filing.