Feytech Holdings Berhad announced that it has signed a joint venture agreement with Wuhu Ruitai Auto Parts Co., Ltd. to jointly design, manufacture, and assemble components and parts related to automotive seats for both domestic and international markets.

China based Ruitai, a wholly owned unit of Wuhu Chery Technology Co., Ltd., brings a wealth of expertise to the partnership, particularly in the design, manufacturing, assembly, and distribution of vehicles and automotive parts.

Under the JVA, a new company will be formed with Feytech holding a 51% equity interest and Ruitai holding the remaining 49%. The joint venture will be capitalised with an initial investment of RM6 million, with an additional capital injection of RM7.73 million after one year, proportionate to the shareholding structure. Feytech's contributions will be funded through internally generated funds.

The joint venture positions JV Co to supply complete knock-down automotive components and parts relating to automotive seats for use in vehicles manufactured by Chery Automobile Co., Ltd. and its affiliated entities. This is aligned with the strategic goals of both companies to elevate Malaysia's position as a regional hub for automotive manufacturing and exports.