CPE Technology JV to spend RM2 mil to RM3 mil on site preparation, production infrastructure setup

PETALING JAYA (July 17): CPE Technology Bhd’s joint venture (JV) with Japan-based Kanekita Co Ltd is expected to require an initial capital injection of RM2 million to RM3 million for site preparation and construction-related setup works as it prepares to commence semiconductor-related manufacturing activities.

In a Bursa Malaysia filing on Thursday, CPE said the initial capital will be utilised for the joint venture company’s operational requirements, including site preparation works and the establishment of a surface treatment production line.

The JV company is expected to be incorporated within 60 days from July 14, 2026. Following incorporation, the production line will be installed and tested, with the installation and testing expected to be completed within 12 months.

Manufacturing activities and product sales are expected to commence in the third quarter of the financial year ending 2027 (3QFY2027).

CPE holds a 50.5% stake in the joint venture, while Kanekita owns the remaining 49.5%.

The JV will market products utilising passivation treatment technology primarily to the semiconductor industry, particularly precision components for integrated gas supply systems made from ultra-high purity (UHP) steel.

CPE said its responsibilities in the JV include site preparation works, establishment of the production line, manufacturing of products using the surface treatment technology, marketing activities, and development and maintenance of customer relationships.

Upon commencement of operations, the JV company will provide surface treatment services exclusively to CPE and its group of subsidiaries. The venture will also facilitate the transfer of technical knowledge, operational expertise and relevant skills to the CPE group.

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!