KUALA LUMPUR, May 19 — Scomi Group Bhd has proposed to form a 20:80 joint venture (JV) company with Zuha Systems Sdn Bhd to jointly explore opportunities in the rail industry.
In a filing with Bursa Malaysia today, Scomi said both parties had signed a JV agreement today.
In a separate statement, the Practice Note 17 (PN17)-status oil and gas (O&G) support service provider said the agreement is in line with the company’s strategy of seeking strategic alliances that offers synergistic growth benefits that would contribute towards generating recurring revenue and sustainable profits.
“This strategy is part of our efforts towards restructuring and rebuilding the company,” it said.
According to Scomi, Zuha is primarily involved in the public transportation and energy sectors, and its business focus areas include urban transport, rail, O&G and renewable energy.
“Zuha also works in collaboration with technology partners, subject matter experts and original equipment manufacturers (OEMs) for the projects that it is involved in,” it said.
With that, Scomi believes that the agreement with Zuha would offer vast potential for the company, as both organisations bring complementary experience and expertise to the JV.
“The JV will target opportunities in new conventional rail and urban rail projects which are anticipated in the country.
“By utilising the maintenance expertise within the company, the JV is optimistic of its potential to secure projects in maintenance, repair and overhaul for the rail industry,” it said. — Bernama
