Genetec Technology Bhd has inked a memorandum of understanding (MoU) with Thailand-based Asia Precision Public Company Ltd (APCS) to study the feasibility of jointly developing factory automation for energy storage system business in Thailand.
APCS is engaged in the business of precision components and parts manufacturing, industrial automation, construction and utilities.
In a bourse filing, Genetec said the parties agree to conduct the feasibility study for the project. If both parties are satisfied with the results of the study later, they will enter further negotiations to carry out the project as a joint venture under a newly-incorporated JV company, it said.
Genetec said the MoU provides the company with a big opportunity to enlarge its customer base in the energy storage segment, as part of its ongoing customer base diversification plan.
The potential joint venture will also provide the company with a strong presence in Thailand to grow this energy storage business segment, it said.
Genetec shares ended five sen or 1.73% higher at RM2.94 on Tuesday (Jan 11), giving the automated industrial system group a market capitalisation of RM2 billion.