Sapura Industrial Berhad (SIB) has proposed to provide financial assistance to its 51%-owned joint venture company, SIB ZZT Sdn Bhd, to support the completion and operational rollout of its lithium battery precision components manufacturing facility in Gurun, Kedah.
The proposed funding is intended to bridge SIB ZZT’s financing requirements ahead of the drawdown of external banking facilities, ensuring the project remains on schedule and fulfils its contractual commitments to customers.
SIB said the assistance would facilitate the timely completion and commissioning of the manufacturing facility, which is expected to begin operations by August 2026.
The joint venture traces its origins to a collaboration between SIB Ventures Sdn Bhd, a wholly-owned subsidiary of Sapura Industrial, and China’s Zhejiang Zhongze Precision Technology Co. Ltd (ZZT)
SIB ZZT is principally involved in manufacturing and assembling precision structural components for lithium batteries used in energy storage systems, electric vehicles (EVs), industrial tools and machinery.
The project carries an estimated development cost of approximately RM54.1 million, comprising:
- RM11.4 million for facility design, planning and construction;
- RM41.4 million for machinery and equipment;
- RM480,000 for production test-run materials; and
- RM939,000 for staffing-related costs.
According to SIB, the proposed financial assistance will primarily serve as interim funding until Banking Facility I becomes available for drawdown.
The funding is expected to prevent delays in construction, commissioning and production while enabling SIB ZZT to meet obligations under its supply agreement with EVE Malaysia.
