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KUALA LUMPUR (Oct 10): Holdings Bhd will manufacture and sell to Proton and Geely Motor customers in Malaysia under a technical assistance agreement with China-based SIIC Transportation Electric Co Ltd (STEC).

In a bourse filing, MCE said its wholly-owned subsidiary Multi-Code Electronics Industries (M) Bhd had entered into an agreement to purchase equipment and products comprising child parts and components designed by STEC and for Multi-Code to manufacture the products.

MCE said STEC, which principal activities are the manufacture and supply automotive electronics and mechatronics parts for motor vehicles, would also assist Multi-Code in the establishment and upgrading of its manufacturing facility.

“STEC is willing to make available the STEC for a fee and Multi-Code is willing to pay such fee, in order to acquire such and technical information.”

STEC will grant the company the right and license in Malaysia to use its technology for the development, manufacturing, production, sale, marketing, and distribution of certain products.

The STEC technology includes information as to materials, child parts and components, method of manufacturing and processing, tools and machines, inspection and testing, operational method, and advice, as well as design and development support.

“In accordance with STEC’s provision of technical assistance, MCE shall pay to STEC a royalty at a defined rate on the basic value derived based on sales price of products sold by MCE to be agreed upon by both parties during the term of this agreement,” MCE said.

MCE closed unchanged at 75 sen, giving it a market capitalisation of RM33.3 million.