FEDERAL International Holdings Bhd (formerly Federal Furniture Holdings [M] Bhd) targets to clinch more engineering, procurement, construction, commissioning (EPCC) collaboration opportunities in the renewable energy space following its latest partnership with an industry top gun.
Yesterday (Nov 2), the company via its joint-controlled entity Warrants RE Assets Sdn Bhd signed a memorandum of understanding (MOU) with Fabulous Sunview Sdn Bhd for business collaboration on renewable energy projects development in Malaysia.
The MOU entails the responsibilities where WREA will identify and acquire solar plants in Malaysia while Sunview will be engaged as the main contractor to carry out repairing and upgrading works for all of these plants.
The synergistic collaboration will help to provide a cohesive and comprehensive expansion strategy into the renewable energy ecosystem, according to the company’s executive director Datuk Choy Wai Ceong.
“We are excited about our collaboration with Sunview as it puts us on an accelerated trajectory to venture into the solar business,” he pointed out.
“Sunview’s outstanding track record in their EPCC works and their technical expertise put us in a good position to acquire existing solar farm followed by refurbishment and upgrade works.”
Sunview which commenced operations in 2013 is a leading solar power system provider and solar installation company.
It provides turnkey solutions from engineering, procurement, construction, commissioning (EPCC) and subcontracting and other solar related services for solar panel installation in Malaysia.
The company has also been appointed by Malaysia Debt Venture, an agency under the Finance Ministry (MOF), as an auditor for solar plants. Over the past eight years, Sunview has completed a total portfolio of more than 200 MWdc (megawatt of direct current) capacity in solar power generation.
Asia Greentech Fund (AGTF) which is incorporated with the direction to invest in green energy and green technology in Asia in response to climate change is an indirect preference shareholder of Sunview who provides financial support to the company to undertake EPCC for RE projects.
Malaysia Venture Capital Management Bhd, a wholly-owned subsidiary of the MOF, is a partner in AGTF.
Datuk Choy added that the focus of the collaboration between Sunview and WREA moving forward would be on the acquisition of existing solar plants that require upgrade and refurbishment to improve efficiency.
“With Sunview’s technical know-how to refurbish and upgrade the assets, we aim to bring their capacity back to an optimum level. This will help to generate positive operating cashflow for the Group immediately,” he enthused.
The collaboration and investment into Sunview will help to bridge the gap in terms of expertise and technical know-how for Federal International to ensure a seamless collaboration with China’s top five power generators, State Power Investment Corporation (SPIC).
At the close of yesterday’s trading, Federal International was unchanged at 64.5 sen with 284,000 shares traded, thus valuing the company at RM88 mil. – Nov 3, 2021
