KUALA LUMPUR (Aug 1): SkyGate Solutions Bhd (KL:SKYGATE), formerly known as Ewein Bhd, has entered into a joint venture with Singapore-based New Jin Hai Pte Ltd (NJH) to establish a high-precision manufacturing business in George Town, Penang.

In a filing with Bursa Malaysia on Friday, the precision engineering and industrial property group said a new company  — SkyGate NHJ Technology Sdn Bhd (NHJ Tech)  — will be formed, with its wholly-owned unit, SkyGate NHJ Sdn Bhd (SNHJ), holding a 51% stake and NJH the remaining 49%.

NJH, wholly-owned by Suzhou New Hongji Precision Part Co Ltd, mostly operates as an investment company.

Penang-based SkyGate Solutions’ capital commitment for the venture amounts to RM19.55 million, representing 51% of the total capital contribution of RM38.34 million. The funds will be channelled towards setting up the factory, workforce development and operational working capital.

SkyGate Solutions said the joint venture will focus on manufacturing metal forming machinery and machine tools, targeting Malaysia’s expanding semiconductor sector and benefitting from NJH’s fully digitalised production systems.

It added that the joint venture is not expected to materially affect its earnings for the financial year ending Dec 31, 2025, but would to contribute positively in subsequent years.

Shares in SkyGate Solutions closed up three sen or 4.55% to 69 sen on Friday, valuing the group at RM220.50 million.