Malaysia -- The board of directors of Kossan Rubber Industries Bhd has announced that its subsidiary Doshin has signed a memorandum of understanding (MOU) with Amona and Kohrang to form a joint venture to manufacture seismic rubber bearings for the construction of buildings in Iran
Kossan said, in a 14 Nov statement that the estimated cost of the project is yet to be determined, but it is likely that it will be funded using internal funds and/or borrowings.
The Malaysian Rubber board (MRB) will supply the companies with â€œthe high damping rubber compound,â€ needed to produce the rubber bearings, said Kossan, in the statement.
â€œPotential is great in Iran,â€ said Kossan's spokesman in a 16 Nov email to ERJ. "With this JV, Kossan is now paving a road into Middle East market for its TRPs and further unlocking the value from its technology capability,â€ he added.
The spokesman said that Kossan â€œare the only one from Malaysia capable and thus, being chosen to work together with the MRB to help Iranian to develop such products,â€
The rubber bearings are used in roads and highways and high-rise buildings (including apartments, hotels and office blocks) to absorb or to minimise the impact from possible damages during earthquakes, said the company.
The factory will be handled by Kossan's JV partner, â€œwe are mainly transferring our technology and our portion is small,â€ said the spokesman.
According to the spokesman the company plans to â€œtap into aircraft braking systems, another quality stringent product.â€
Kuala Lumpur, Malaysia-based Amona is a wholly owned company involved in property development, construction work and project management in Iran.
Kohrang produces and supplies industrial and marine rubber parts to the local industries and is based in Isfahan, Iran.(ss)
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Press release from Bursa Malaysia