KUALA LUMPUR (July 19): Sapura Resources Bhd's unit has inked a joint venture (JV) agreement with Rolls-Royce to distribute the latter's products to marine (naval and commercial), rail, construction and industrial, mining, agriculture, oil and gas, and power generation market sectors in Malaysia.

In a statement today, Sapura Resources said its subsidiary SRB One had formed the JV, namely MTU Power Systems Sdn Bhd, with Rolls-Royce's subsidiary MTU Asia.

MTU Power Systems will be the exclusive distributor of MTU products in Malaysia for a decade while also undertaking the sales and servicing of products and original equipment packaging solutions from MTU, which is considered to be a core business of Rolls-Royce's Power Systems business unit.

For a start, MTU Power Systems is to focus on acquiring adequate engineering capabilities and operation knowledge to provide maintenance, repair and overhaul (MRO) services for Malaysian MTU customers.

SRB managing director Datuk Shahriman Shamsuddin said SRB provides local knowledge and insights to the JV with Rolls-Royce.

"We look forward to the opportunities that lie ahead and are excited about the prospects the joint venture brings, as it allows us to provide a comprehensive suite of MTU's engine products, customer care and its value added services to the Malaysian market," said Shahriman.

Meanwhile, MTU Asia president, and network and distribution director Shovan Biswas said Malaysia was a strategic market for the Rolls-Royce unit in recent years, having seen strong demand for MTU engines from the governmental marine sector.

He added the unit forecasted opportunities in power generation, renewable energy, construction and industrial sectors, and commercial marine and railway projects.

"The forming of MTU Power Systems with SRB will allow us to be closer to our customers in Malaysia and better serve the local industry. We are committed to supporting customers here to enhance their product lifecycles and be cost-effective in their operations. MTU Power Systems will also allow us to effectively explore opportunities in supply chain and future solutions business, further expanding our footprint in this market," said Biswas.

At 10.34am, shares in Sapura Resources traded unchanged at 66.5 sen, giving it a market capitalisation of RM92.83 million.