Mould and tooling manufacturer Meiban Group says it has entered into a joint venture agreement with GKC Holdings to set up a new joint venture company Meiban Drilling and Machining as part of its planned diversification into machining and drilling services, including deephole drilling.

Under the terms of the deal, the initial share capital of JV company will be $4 million, comprising $2.8 million from Meiban and $1.2 million from GKC. Following the initial capital contribution, Meiban will own 70% of JV company while GKC will own 30%. The company and GKC will also extend $1.75 million and $750,000in shareholders’ loans respectively to the JV company.