CPE Technology (KLSE:CPETECH) signed a share purchase agreement to establish a joint venture with Japan's Kanekita, according to a Tuesday filing with the Malaysian Exchange.

Under the agreement, the two parties will manufacture and sell materials and products using passivation treatment technology.

The Malaysia-incorporated JV will have an initial issued share capital of 100 ringgit, with the company holding a 50.5% stake and Kenekita the remaining 49.5%.

Kanekita will provide technical support to the venture and may also provide shareholder loans or advances to procure equipment, which can be later capitalized toward the unpaid portion of its shares.