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Spindex to expand operations in Vietnam through JV
MAINBOARD-LISTED Spindex Industries announced on Thursday that it has entered into a 50-50 joint venture (JV) agreement with Acuger Precision Corporation to expand operations in Vietnam.
"The board is of the view that the JV will enable the group to expand its manufacturing capacity in Vietnam, leverage its existing supply chain network and customer base in Vietnam, and broaden the asset and earning base of the group," said the precision manufacturing company.
This is in line with the company's strategy to constantly review and refine its manufacturing footprint to achieve an optimal allocation of resources and the location of the group's manufacturing assets.
The JV company will serve as an investment holding company of a wholly-owned subsidiary to be incorporated in Vietnam. It will be known as Spindex Acuger Precision (Hanoi) Co Ltd (VietSub).
VietSub will be engaged in the business of manufacturing and trading of plastic moulds, plastic products and its related assemblies, primarily in Vietnam, and any other business as the board of the JV company may determine. The incorporation of the VietSub is expected to be completed around August 2020.
Shares of Spindex last traded at 87.5 Singapore cents.