Shandong Kuntai New Material Technology (SHE:001260) partnered with a unit of Yoshimitsu Keori to set up a joint venture, Shandong Kuntai Yoshida Material Technology, according to a Shenzhen bourse filing on Saturday.

Shares of the Chinese producer of BCF yarn, auto tufted floor carpets, and car mats closed less than 1% higher on Monday.

The joint venture, which will have a registered capital of 3 million yuan, will manufacture cellulose fiber, auto parts, textiles, and other products.

Kuntai will own 51% of the venture, while Yoshida will hold 49% after injecting 1.53 million yuan and 1.47 million yuan, respectively.