PETALING JAYA: CPE Technology Bhd
has entered into a joint venture with Japan's Kanekita Co, Ltd to manufacture and market materials and products using passivation treatment technology, in a move aimed at strengthening its position in the semiconductor manufacturing equipment industry.
In a filing with Bursa Malaysia, CPE said it had signed a Share Purchase and Joint Venture Agreement with Kanekita to establish a Malaysian private limited company within 60 days.
CPE will hold a 50.5% stake in the venture, while Kanekita will own the remaining 49.5%.
The joint venture (JV) will combine Kanekita's proprietary surface treatment technology with CPE's precision engineering and manufacturing capabilities.
Kanekita will provide technical support, while CPE will contribute its manufacturing facilities, production capacity and customer network to commercialise the technology.
CPE said it expects to fund its capital contribution through internally generated funds and/or bank borrowings.
The company said the JV is not expected to have a material financial impact in the current financial year but is anticipated to contribute positively to its long-term profitability.
It added that the proposal does not require shareholder or regulatory approval.
