KUALA LUMPUR (Jan 20):  Uzma Bhd (Uzma) has embarked on a joint venture with a China-incorporated company for the provision of engineering, procurement, construction, installation and commission of non-metallic pipes in Malaysia.

The joint venture-cum-shareholders agreement was signed between Uzma, China-based Aerosun Corporation, its subsidiary Aerosun Hong Kong Co (Aerosun HK) Limited as well as one individual by the name of Gameladha Nasiriffin Arifin.

A joint venture company was created on Jan 18, 2017 under the name of Aerosun Uzma Malaysia Sdn Bhd’ (Aerosun Uzma)

In a filing with Bursa, Uzma said it will be subscribing to a total of 240,000 shares, which represents 48% of the fully paid-up capital in Aerosun Uzma.

The balance of 49% will be subscribed by Aerosun HK and 3% by Gameladha Nasiriffin.

“The funds to subscribe for 240,000 Shares by UZMA will be funded internally.” The company said

The intended business of Aerosun Uzma is provision of onshore and offshore engineering, procurement, construction, installation and commissioning services for non-metallic Reinforced Thermoplastic Pipes and pipelines and to capture Non-Metallic Pipe, flexible pipeline projects in Malaysia and Southeast Asia.

The joint venture is not expected to have any financial effects on net assets per share or gearing, on the assumption that the subscription of the 240,000 Shares by Uzma in the JV Company is funded wholly by internally-generated funds.

The joint venture will not have any effect on the issued and paid up share capital and substantial shareholders’ shareholding in the Company.

Uzma shares closed unchanged today at RM1.70, with a market capitalisation of RM494.59 million.