KUALA LUMPUR (April 29): WTEC Group Bhd (KL:WTEC), which debuted on the ACE Market on Tuesday, has signed a memorandum of understanding (MOU) with China-based Jiangsu ChengFeng New Materials Co Ltd to establish a framework to develop and supply specialty polyurethane foam materials and products.
The polyurethane products are aimed to be developed for automotive and electrical & electronics (E&E) applications across Asean, the foam and fabric products maker said. The MOU will remain valid for five years from the date of signing, it added.
The collaboration entails joint technical development and customisation of polyurethane foam products, supply and distribution of specialty polyurethane foam materials, market development activities across Asean member countries and the provision of technical support.
"The collaboration is expected to strengthen WTEC Group's presence in the automotive and E&E sectors and subsequently enable the company to better meet the evolving needs of customers across the Asean region," the company said.
"The technical foam materials will complement WTEC Group's existing product range, enabling the company to move further into specialised and higher value market segments where it already holds a strong position, particularly in the automotive and E&E industries," the company added.
WTEC Group mainly manufactures foam products made from plastics with air-filled pockets used in industries from automotive to electronics. The company also makes non-woven fabric parts, used as padding for armrests in cars and lining for car seats.
Jiangsu ChengFeng New Materials is primarily engaged in the manufacturing and development of advanced polyurethane-based products under its in-house brand Winfun Foam, which are widely applied in industries including automotive, aerospace, rail transportation, medical, electronics, water treatment, and air filtration.
At the time of writing, WTEC Group’s shares were down two sen or 8% at 23 sen, giving the company a market capitalisation of RM110.4 million.