KUALA LUMPUR (Nov 7): Dialog Group Bhd and its partner Hong Kong-listed Morimatsu International Holdings Co Ltd said they will spend RM250 million for the expansion of their joint venture (JV) company’s engineering and fabrication facilities in Pengerang, Johor.

“With the expansion estimated to be completed progressively by the first quarter of 2025, the 18,245-square metre facility will mainly consist of module production workshops equipped with modern workplace amenities and infrastructure.

“This will support Morimatsu Dialog in meeting the demands and opportunities in the region and beyond while contributing more opportunities to the state’s job market,” Dialog and Morimatsu International said in a joint statement on Tuesday.

Morimatsu International owns a 51% stake in the JV, Morimatsu Dialog (M) Sdn Bhd, while the remaining 49% is held by Dialog.

Morimatsu International executive director Hirotaka Kawashima said the JV will focus on manufacturing equipment and modules used to produce raw materials for electric vehicle batteries, semiconductors and green energy.

“Overseas demand in these areas is increasing rapidly and the overseas business will drive our growth. We will firstly establish a production system with an annual revenue target of RM300 million,” he said.

Johor Menteri Besar Datuk Onn Hafiz Ghazi, who graced the new facility’s groundbreaking ceremony, said the new facility will support the overall growth of Pengerang, solidifying the hub's position as a preferred investment destination.

“This is in line with our wish to attract high-quality and value-adding investments into the state (Johor),” he added.

Onn Hafiz said the newly expanded facility is projected to create 500 additional employment opportunities, bringing the facilities' total manpower to 650.

Dialog shares ended one sen or 0.47% lower at RM2.13, giving the group a market capitalisation of RM12.03 billion.