Leader Environmental Technologies says its subsidiary, NTi Memtech (NTi), has entered into a joint venture with Innovamem Holdings to undertake the business of high-performance membrane production.
Under the agreement, both groups are expected to establish a joint venture company, NTi Technology. NTi and Innovamem are set to contribute $2 million each into NTi Tech as working capital.
Innovamem, an investment holding company, was founded by the membrane veteran, Ge Hailin and his daughter, Ge Weizheng. The group says Ge has invented the next generation of membrane products, “known for their superior properties and cost-effectiveness”.
The group expects the joint venture to benefit from an optimised cost structure, which would reduce costs of production in China and Singapore. The group adds that the fliexbility in production costs will “enable NTi Technology to adapt to market conditions and enhance its competitive position”.
The group’s investment in NTi Technology is set to be funded using the proceeds from the convertible bonds.
The joint venture is not expected to have any material impact on the earnings and net tangible assets per share of the group for the current financial year ending Dec 31.
See also: UOB signs MOU with Shanghai Gold Exchange to connect China’s gold supply chain to Asean markets
Shares in Leader Environmental Technologies LS9 closed flat at 5 cents on Oct 28.
