KUALA LUMPUR (March 18): TT Vision Holdings Bhd said it is partnering with a Singapore-based company to set up a manufacturing base in Malaysia to produce automation equipment and related hardware and software products, particularly in the solar energy field.

The two companies will set up a joint venture (JV) to undertake research and development, production and sales of the products intended for Southeast Asian, European and American markets, said the automated test equipment manufacturer in a bourse filing.

The initial investment is RM166.66 million, of which RM24.99 million will come from TT Vision, giving it a 15% stake in the JV.

Its partner, Autowell (Singapore) Pte Ltd (ASPL), will invest the remaining RM141.61 million for an 85% stake in the JV.  ASPL is a subsidiary of Wuxi Autowell Technology Co Ltd, a company listed on the Shanghai Stock Exchange.

TT Vision said the JV will further its business diversification by fostering synergistic collaboration with foreign direct investments, opening up new market horizons, particularly in advanced solar equipment.

The JV, which is expected to be completed within six months, will be funded through a combination of internally generated funds and/or the proceeds to be raised from a fund raising exercise via the capital market, the group said.

TT Vision, which was listed on the LEAP Market of Bursa Malaysia in 2019, was relisted on the ACE Market in January 2023, raising total gross proceeds of RM28.73 million.

TT Vision has four business divisions: optoelectronics inspection equipment, discrete component and integrated circuit inspection equipment, solar cell inspection equipment, and vision-guided robotic equipment.

The stock closed down 2.6% or 2.5 sen to 92 sen on Monday, bringing the group a market capitalisation of RM431 million. Over the past year, the stock has fallen 24%.