SINGAPORE (June 9): OEL (Holdings), the provider of various engineering, trading, and contracting solutions, has entered into a joint venture agreement (JVA) with Shanghai Suntec to manufacture and market High-Intensity Focused Ultrasound (HIFU) machines on Tuesday.

Both companies will jointly manufacture and distribute the machines, as well as provide installation, medical, and equipment after-sales services under its joint venture company in Singapore (JV Company).

The JV Company will manufacture the HIFU machine, while the medical team at Shanghai Longjian Hospital Management (Shanghai Longjian) will oversee the machines’ medical services such as medical training, remote surgery guidance, and purchase material.

The JV Company, which is 80% owned by OEL’s wholly-owned subsidiary, AJJ Health Care Management (AJJ), and 20% by Shanghai Suntec, will be registered with an initial issued and paid up capital of $100 comprising of 100 ordinary shares.

HIFU is a procedure in which high-energy sound waves are aimed directly at an area of abnormal cells or tissue in the body. The waves create heat that kills the cells. It is said to be able to improve the quality of life and decrease the cost of care for patients with tumours, such as cancer patients.

Its technology uses 3D image precision to treat large areas of medical conditions within a shorter period of time, with less discomfort. It is said to kill tumours with little to no pain, and no side effects on vital organ functions, amongst other benefits.

HIFU is currently being studied in the treatment of prostate cancer and other types of cancer and diseases. Shanghai Longjian’s medical team is also currently using HIFU technology for cancer treatments in China.

As at 2.55pm, OEL shares are changing hands flat at 2.5 cents.