FEYTECH Holdings Bhd has entered into a joint venture agreement (JVA) with Wuhu Ruitai Auto Parts Co Ltd, a subsidiary of China’s Chery Group, to jointly design, manufacture, and assemble automotive seat components for domestic and international markets.

A new entity, JV Co, will be established with Feytech holding a 51% stake and Ruitai 49%.

The joint venture involves an initial investment of RM6 million, followed by an additional RM7.73 million in the second year, funded proportionally.

Feytech will utilise internally generated funds for its share.

Feytech CEO Connie Go emphasized the partnership’s alignment with Malaysia’s National Automotive Policy, which aims to foster technology transfer, create high-value jobs, and boost exports.

The collaboration positions Malaysia as Chery’s Southeast Asian manufacturing hub, enhancing Feytech’s reach in international markets.

The JV Co will supply complete knock-down components for automotive seats, primarily for Chery Automobile Co Ltd and its affiliates, marking a strategic move to elevate Malaysia’s role in the regional automotive industry. — TMR