KUALA LUMPUR (April 24): Sapura Industrial Bhd plans to collaborate with Mili Tech Sdn Bhd on feasibility studies for electrified vehicle (EV) products and potentially establish a joint venture (JV) business in Malaysia.

In a filing with Bursa Malaysia on Wednesday, the automotive components manufacturer said that its wholly owned unit, International Autoparts Sdn Bhd, has entered into a memorandum of understanding (MOU) with Mili Tech.

The MOU aims to collaborate and prepare feasibility studies in EV/xEV products, services, operations, trade, technology, training, certification, manufacturing and assembly, with the view of exploring the establishment of a JV business.

International Autoparts is engaged in the retail and after-sales trading of auto parts, while Mili Tech is involved in the wholesale and retail sale of various parts, components, tools, supplies and accessories for motor vehicles.

According to Sapura Industrial, the MOU will be effective upon signing and will last for one year.

“The MOU solely expresses the parties’ desire to create a mutually beneficial relationship and does not create any legally binding rights, liabilities or obligations on the parties,” it added.

Shares in Sapura Industrial closed 2.5 sen or 2.83% lower at 86 sen on Wednesday, valuing the group at RM62.58 million.