KUALA LUMPUR: Ajiya Bhd has signed a memorandum of understanding (MoU) with YKGI Holdings Bhd to establish a long-term strategic business partnership between both companies in Sabah and Sarawak.
Ajiya is a company involved in the manufacturing and supply of materials used in construction and building-based industries, while YKGI’s principal activities are the manufacturing and sale of galvanised and coated-steel products, picked and oiled hot-rolled coils and cold-rolled coils.
In a filing to Bursa Malaysia yesterday, Ajiya said, the partnership would synergise and optimise both parties’ manufacturing resources.
This would also help enhance the revenue and profitability of both parties through a joint-venture, business combination or any other form of business arrangement to be manually agreed upon, it said.
Ajiya’s Group managing director, Datuk Chan Wah Kiang, said the MoU allowed both firms to form the basis of consensus to examine the feasibility of the proposed partnership.
“We shall explore business opportunities and establish a cooperative relationship that will benefit both parties,” he said.
He said the collaboration would open up business opportunities for Ajiya in Sabah and Sarawak by leveraging on the extensive network of YKGI. Chan said this would further complement Ajiya’s current manufacturing business in terms of improving its earnings visibility. — Bernama