UMW Corporation Sdn. Bhd. (UMWC), a wholly-owned subsidiary of UMW Holdings Berhad (UMWH), has today executed a Joint Venture Agreement (JVA) with Komatsu Ltd. (Komatsu) for its heavy equipment business.
The two parties have subsequently entered into a Joint Venture Agreement (JVA) to establish the next phase of cooperation between the two parties as joint-venture partners. UMWC and Komatsu now hold 74% and 26% respectively of the issued and paid up share capital of the JVC known as UMW Komatsu Heavy Equipment Sdn. Bhd. (UKHE).
The execution of this JVA marks the completion of the TA and the commencement of the strategic partnership between the UMW Group and Komatsu.
President & Group Chief Executive Officer of UMW Holdings Berhad, Badrul Feisal bin Abdul Rahim, said: “We are pleased to have effected this joint venture partnership with Komatsu, which will allow UMW to move up the value chain in the heavy equipment business from a pure distributor to a JV partner, further strengthening our long-term business relationship. With Komatsu’s standing as a leading manufacturer of construction and mining equipment globally as well as UMW’s strong presence in the region, we look forward to the enhanced opportunities that this JV will bring especially via the introduction of new equipment models and improvement of value-added services to expand our customers base and strengthen market share in the territories that we operate. This initiative is part of our strategy to strengthen our core businesses to deliver value to our shareholders.”