APM partners Delta Kogyo on automotive seating systems
PETALING JAYA: APM Automotive Holdings Bhd is partnering Delta Kogyo Co Ltd to develop, manufacture, assemble and sell automobile seating systems for Mazda Motor Corp vehicles.
In a filing with the stock exchange last Friday, APM said its wholly owned subsidiary Auto Parts Holdings Sdn Bhd entered into a joint venture (JV) agreement with Delta Kogyo for the partnership.
APM and Delta Kogyo will own 60% and 40% equity interest in the JV company, respectively. The JV company will have an issued and paidup share capital of RM23 million.
APM said its investment in the JV will be financed with internally generated funds. It is expected to generate reasonable returns in the longer term.
As Delta Kogyo is one of the technical partners of APM Group in Malaysia, APM believes the JV will enhance and strengthen its relationship with Delta which will enable both parties to leverage on each other’s knowledge and experience to bring greater synergy in their expertise and know-how in the design, development manufacture, assembly and sale of automotive seats.
Japan-incorporated Delta is in the business of designing and manufacturing automotive seating and seating parts, developing seating for trains, airplanes, ships and for homes, theatres and hospitals.