KUALA LUMPUR (Oct 8): Homegrown automotive battery manufacturer ABM Fujiya Bhd is partnering with China’s Jujiang Power Technology Co Ltd (Jeje) to explore and evaluate the possibility of setting up a new battery manufacturing plant in Malaysia worth RM500 million.

In a filing with Bursa Malaysia today, ABM Fujiya said its wholly-owned unit Amalgamated Batteries Manufacturing (Sarawak) Sdn Bhd has inked a Memorandum of Understanding (MoU) with Jeje for the purpose.

The MoU creates no contractual relationship between ABM Fujiya and Jeje, but is aimed at providing a framework of cooperation and for any future term arrangement between the parties over batteries.

"The directors of ABM Fujiya believe that a collaboration between ABM Fujiya and Jeje will give an advantageous platform to expand its existing batteries business and achieve better prospects in the future,” it said.

ABM Fujiya closed half a sen or 0.96% higher at 52.5 sen, for a market capitalisation of RM94.5 million. The counter saw some 12,500 shares traded.