SAPURA Industrial Berhad (SIB) has announced a new joint venture with Mili Tech Sdn Bhd to focus on the growing market for electrified vehicles.

The collaboration, finalised on November 11, 2024, will involve the repurposing, refurbishing, and recycling of batteries for electric and hybrid vehicles, along with providing services and training for the maintenance of such vehicles.

The joint venture will see SIB’s subsidiaries, SIB Ventures Sdn Bhd (SIBV) and SIB Mili Sdn Bhd (SIBM), partner with MTSB to expand their footprint in Malaysia’s evolving automotive sector.

As part of the deal, SIBM will acquire MTSB’s business assets, including office equipment and inventory, for a total consideration of RM372,136.

Under the terms of the agreement, SIBV will hold a 55% stake in SIBM, with MTSB holding the remaining 45%.

The joint venture aims to expand into the growing market for electrified vehicles, which is expected to contribute to Malaysia’s sustainability efforts.

The acquisition will help SIB enhance its capabilities in the electric vehicle and battery recycling markets, aligning with the country’s green energy objectives.

The financial impact of this joint venture is expected to be minimal on SIB’s earnings and share capital for the financial year ending January 2025, with funding for the acquisition being sourced from internally generated funds.

This new partnership is in line with SIB’s broader strategy to diversify its portfolio and support Malaysia’s commitment to reducing carbon emissions and promoting green technologies. –TMR