SINGAPORE: The Board of Directors of Advanced Systems Automation Limited announced that Yumei Technology Sdn Bhd, a wholly-owned subsidiary of the company, has entered into an agreement with Nakareg International Company Limited, whereby Yumei Technology is appointed as the business partner of Nakareg to manufacture steel trailer wheels.
The total investment cost for the project is expected to be RM 6.16 million, which will be funded mainly through bank loans.
The project is expected to improve Yumei Technology’s overall manufacturing capabilities and allow it to offer a more comprehensive value proposition to a broader customer base across a wider region.
The full project will require Yumei Technology to acquire metal stamping and welding capabilities, whilst the rest of the project is part of Yumei’s expertise and ordinary course of business.
The project is not expected to change the risk profile of the Group, as the project will not result in a change in control of the Advanced Systems Automation Limited and no shares in the issued and paid-up capital of the company will be issued for the project; the project is expected to have a positive impact to Yumei Technology’s earnings, and the investment cost will be funded mainly through bank loans; and the project does not result in an expansion of the company’s business to a new business sector.