KUALA LUMPUR (July 23): Ireka Corporation Bhd (Ireka) has entered into a joint venture and shareholders’ agreement with CRRC Urban Traffic (Europe) Co Ltd (CRRC UT Europe) to pursue urban transportation business opportunities in Malaysia and Southeast Asia.
In a statement today, Ireka said the 51:49 joint venture company (JVCo) will be pursuing opportunities particularly in the rail, urban transportation, logistics, trading and construction sectors.
CRRC UT Europe is a subsidiary of CRRC Urban Traffic Co Ltd, a member of the CRRC Group, the world’s largest rolling-stock and rail transit equipment manufacturer.
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“The JVCo’s business shall include sales and marketing of urban transportation products, special purpose vehicles and electro-mechanical equipment from CRRC UT and its affiliates.
“Additionally, the JVCo will also provide coordination and liaison services on urban transportation projects; installation, maintenance and after-sale services, the possibility of manufacturing in respect of vehicles, machinery and equipment; and explore long-term investment opportunities for urban transportation projects and logistics businesses,” it said.
Ireka said the JVCo will also focus on providing urban traffic solutions to the government, city councils and public institutions by deploying integrated solutions and innovative products such as new energy electric buses and the Autonomous-Rail Rapid Transit (ART) system.
ART is a cutting-edge technology from CRRC Group that combines the transit capacity of a modern tram with a rail-less technology, hence bringing about a significant reduction in implementation costs and timeline compared with the traditional rail transit system.
Ireka’s group managing director, Datuk Lai Voon Hon said the formation of the JVCo marked the start of a long-term relationship between both companies in urban transportation and related businesses.
“It is also another affirmative step forward in the group’s commitment in promoting sustainability in our developments, products and services.
“The JVCo is expected to contribute positively to Ireka’s future earnings,” he added. — Bernama
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