PETALING JAYA: ATA IMS Bhd has joined hands with a Shanghai-listed vacuum cleaner hose maker to jointly manufacture household and electrical appliances, in a move to tap into the relocation of customers’ manufacturing base into South-East-Asia.
ATA IMS’s unit, Integrated Manufacturing Solutions Sdn Bhd, had on Aug 7 signed a joint-venture (JV) agreement with Jinhua Chunguang Technology Co Ltd for the incorporation of Suntone (M) Technology Sdn Bhd.
Suntone will be incorporated within the next 30 days, with ATA investing RM4.9mil for its 49% in the JV through internally generated cash.
Chunguang will control the remaining 51% as the majority owner.
Suntone’s principal business will be research and development, manufacture and sales of household and electrical appliances.
“The proposed JV will enable ATA Group and Chunguang to collectively capitalise on these trade diversion opportunities,” ATA said in a filing with Bursa Malaysia.
