KOTA KINABALU: Sabah will notch a world first when it uses technology that can convert waste from the timber industry into biodegradable plastics known as Benta X Project next year.
Chief Minister Datuk Seri Mohd Shafie Apdal said today the project will be a three-way joint venture between Benta Wawasan Sdn Bhd as raw material provider, Biosea Corporation Sdn Bhd (funder and investor) and Lax Global Resources Sdn Bhd (technology provider).
He estimated the total investment at RM5 bil over 15 years and targeted to produce 10 million tonnes of biodegradable plastics during the period.
“I do hope we can realise (this project) by next year, but of course, building the factory will take at least two or three years, he said, adding that the factory will be located in Tawau.
Mohd Shafie was speaking to reporters after witnessing the signing of a memorandum of understanding (MoU) between the three companies here.
Yayasan Sabah chairman Datuk Jamalul Kiram Mohd Zakaria signed on behalf of Benta Wawasan Sdn Bhd, a commercial company under Yayasan Sabah; Datuk Lim Sue Beng for Biosea Corporation Sdn Bhd; while Lax Global Resources Sdn Bhd was represented by its executive chairman, Datuk Seri Syed Razlan Syed Putra Jamalullail.
The project is expected to generate a revenue of RM42.73 bil during the period, averaging RM2.8 bil sales revenue a year.
The estimated earnings before interest, tax, depreciation and amortisation for the 15 year-period is RM11 bil, averaging RM733 mil a year.
Mohd Shafie said the project is aimed at supplying bio plastics resin to the manufacturers of biodegradable plastic bottles, biodegradable food containers and biodegradable plastic bags. – Feb 11, 2020, Bernama