KUALA LUMPUR: Trive Property Group Bhd will be collaborating with a Chinese firm to collaborate on research and development, production, assembly, distribution, and marketing of solar systems.
The group has inked a memorandum of understanding (MoU) with Fortunate Solar Technology Ltd for the purpose.
The move, according to the battery management systems and solar systems trader in a statement yesterday, will allow it to focus on its core business of designing, developing and marketing of green and renewable energy products, particularly solar-related products.
Under the MoU, Trive said, both parties have agreed to inject a total of RM60 million to establish a joint venture company (JV) in Malaysia, in which both companies will have an equal stake. The JV will be renting a parcel of land and building for its factory in Kulim Hi-Tech Park, Kedah.
Fortunate Solar, incorporated in the Shuyang County of Jiangsu Province, is an integrated high-tech provider of solar products and services, silicon products and services, wafers and solar cells.
“The fund will be used to set up a production line in the new factory, which will provide the full range of products or one-stop solutions in the solar business,” said Trive.
Trive executive director Kua Khai Shyuan said the final solar products will be sold in their local markets and the balance thereof will be exported to the United States, Europe and the rest of the world.
With this JV, he said Trive is able to establish a footprint in the China market with huge potential revenue to be generated.
Trive, which has been loss-making since finanancial year 2012, is optimistic about the future growth of the solar industry globally. It added the JV should enjoy 10 tax-free years in Malaysia upon the successful application for a pioneer status.
“Trive [will] work relentlessly to return to the black. Trive is looking forward to improving its bottom line and to continuously seeking every opportunity to yield a better return to its shareholders and sustaining the business with the consideration of all stakeholders,” said Kua.
Shares in Trive closed unchanged at 4.5 sen yesterday, valuing it at RM60.4 million.
TRIVE (0118) - Trive ties up with China firm in solar venture