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SkyGate Solutions Bhd, via its wholly owned unit SkyGate NHJ Sdn Bhd, has entered into a joint venture with Singapore-based New Jin Hai Pte Ltd to establish an advanced precision manufacturing business in Penang.
The newly incorporated joint venture company, SkyGate NHJ Technology Sdn Bhd (NHJ Tech), will be 51%-owned by SkyGate and 49% by New Jin Hai.
NHJ Tech will focus on manufacturing metal forming machinery and machine tools, incorporating fully digitalised systems and high-precision automated production technologies.
SkyGate’s capital commitment amounts to RM19.55 million, representing its 51% stake in the total RM38.34 million investment.
The contribution will be funded via internally generated funds and/or bank borrowings.
SkyGate expects the joint venture to accelerate its technological capabilities and production efficiencies by leveraging NHJ’s R&D, engineering expertise, and customer network, especially in the semiconductor sector.
The company also aims to capitalise on Penang’s competitive manufacturing ecosystem, infrastructure, and supportive government policies.
While the venture is not expected to materially affect FY2025 earnings, it is anticipated to contribute positively in the long term.
The JV is not subject to shareholder or regulatory approvals and is expected to be completed within three months.
SkyGate’s board believes the JV is in the best interest of the group and has taken steps to mitigate potential risks, including economic uncertainties and execution challenges. — TMR
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