KUALA LUMPUR (Dec 30): WTEC Group Bhd (KL:WTEC) has announced its partnership with China’s Jiangsu ChengFeng New Materials Co Ltd’s subsidiary to develop and supply polyurethane foam for automotive and electrical and electronic applications across Asean markets.

In an exchange filing on Bursa Malaysia, WTEC said the sales framework agreement was signed by its wholly-owned WTEC Sdn Bhd. The agreement, which will be in effect from Jan 1, follows the signing of a memorandum of understanding between WTEC and Jiangsu ChengFeng on the day WTEC was listed on the ACE Market on April 29 this year to establish the framework for the partnership.

To be in effect from Jan 1, 2026 till Dec 31, 2026, the agreement is automatically renewable for a year unless either party objects in writing.

WTEC said the partnership will allow the group to expand its product offerings in the automotive and electrical and electronic (E&E) segments, targeting higher-value markets within Asean. It also expects the framework to support business growth by strengthening WTEC’s position and reinforcing its capabilities as a manufacturer of foam products.

Polyurethane foam is a synthetic material that is commonly used in products such as mattresses, refrigerators, construction panels and car seats due to its insulation and cushioning properties.

Priced at 25 sen a share, WTEC's initial public offering raised RM22.54 million to fund its expansion plans, including the opening of a new factory and acquisition of new equipment.

WTEC shares closed flat at 15.5 sen at the end of trading on Tuesday, valuing the group at RM74.4 million.

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WTEC exploring polyurethane foam tie-up with Chinese firm for Asean market