UMW joint venture to provide lubricants, automotive components

The manufacturing and engineering division of UMW Holdings Bhd announced on May 16, that they have formed a joint venture (JV) with Blue Bird Group (BBG) of Indonesia through PT Pusaka Sukucadang Indonesia to provide lubricants, automotive components and service center operations in Indonesia.
UMW said the collaboration was part of UMW’s strategy of moving up the value chain of its manufacturing and engineering operations.
“Under the agreement, UMW and BBG will… establish a joint-venture company in Indonesia, with an initial paid-up share capital of US$4,000,000 divided into 4,000,000 ordinary shares of US$1 each in the proportion of 49% UMW and 51% BBG,” it said in a statement.
BBG is one of Indonesia’s leading transportation companies with operations in major cities including Jakarta, Bali and Bandung.
It currently has a fleet of more than 26,000 vehicles and is one of the first Indonesian companies to implement the strict use of metered taxis and radio communications in air-conditioned vehicles in Indonesia.
UMW President and Group Chief Executive Officer Datuk Syed Hisham Syed Wazir said the proposed joint venture marked a significant step for UMW to further strengthen and solidify its core bases and more importantly give the company a way in to a new high growth market.
“With this platform, UMW and BBG will be able to explore other potential businesses in Indonesia,” he added.
The UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth in four core businesses – automotive, equipment, manufacturing and engineering, and oil and gas.
(May 16, 2013)