Sapura Industrial and Zhejiang Zhongze Ink MOU for Battery Component Manufacturing in Malaysia

Sapura Industrial Bhd has entered into a memorandum of understanding (MOU) with China-based lithium battery firm Zhejiang Zhongze Precision Technology Co Ltd to establish an industrial and commercial battery component manufacturing facility in Malaysia.

The agreement, signed between Sapura Industrial’s wholly-owned subsidiary SIB Ventures Sdn Bhd and Zhejiang Zhongze, lays the groundwork for negotiations on the proposed collaboration. Sapura Industrial stated that feasibility studies will be conducted to assess the viability of setting up the manufacturing plant.

“The proposed collaboration will be subject to parties agreeing on the business plan, thereafter negotiating and entering into a definitive agreement where further terms, rights, and obligations of each party shall be stipulated,” the company announced in a bourse filing.

A final definitive agreement is expected to be reached within six months.