UMW Holdings, based in Malaysia, has inked a letter of intent (LOI) with Komatsu to form a strategic partnership.
The LOI outlines the intention of UMW and Komatsu to establish a joint venture company for heavy equipment business. The move is designed to further strengthen and expand market penetration of Komatsu’s products in Malaysia, Singapore, Myanmar and Papua New Guinea.
UMW Corp, a wholly-owned subsidiary of UMW Holdings, and Komatsu intend to hold 74% per cent and 26% respectively of the issued and paid up share capital of the joint venture.
UMW Holdings president and group chief executive officer Badrul Feisal Abdul Rahim said the market for the heavy equipment is poised for growth in sectors such as construction, mining and forestry.
Komatsu manufactures construction and mining equipment, utilities and forest machines.
The UMW Group currently holds exclusive franchise for the distribution of Komatsu heavy equipment in Malaysia, Singapore, Myanmar and Papua New Guinea.
