KUALA LUMPUR (Oct 14): Sapura Industrial Bhd (KL:SAPIND) said the group has teamed up with Singapore-based Funa Micro Technology Pte Ltd to establish a manufacturing facility for lithium battery precision structural components in Malaysia.

Under an agreement signed on Tuesday, Sapura Industrial's wholly-owned subsidiary, SIB Ventures Sdn Bhd, will hold a 51% stake in a new joint venture company, SIB ZZT Sdn Bhd, and Funa Micro Technology the remaining 49%.

The joint venture will produce prismatic cell cans and assemble cell lids for energy storage systems and related components, said Sapura Industrial in a bourse filing.

It added that the collaboration marks a strategic move to diversify into the energy storage and battery ecosystem, positioning the group for new market opportunities in Malaysia and the wider region.

Sapura Industrial said the joint venture is not expected to have a material impact on its earnings, net assets, gearing or shareholding structure for the financial year ending Jan 31, 2026.

The group said SIB Ventures will finance the investment through internally generated funds and bank borrowings.

The board of SIB ZZT will comprise five directors — three appointed by SIB Ventures and two by Funa Micro Technology.

Sapura Industrial’s shares closed down 3.5 sen or 4.1% to 82 sen on Tuesday, valuing the group at RM59.68 million.