RESINTECH Bhd, a Main Market-listed leading player in plastics pipes, water tanks and fittings manufacturing, has sealed a shareholders’ agreement with SEDC Energy Sdn Bhd, a wholly-owned subsidiary of the Sarawak Economic Development Corporation (SEDC) through its wholly-owned subsidiary Johan Intan Sdn Bhd.
The said agreement was signed between Resintech’s CEO Datuk Teh Leng Kang and his SEDC Energy counterpart Robert Hardin.
The collaboration marks a significant step towards expanding Resintech’s footprint in Sarawak’s industrial plastics sector through the establishment of a joint venture (JV) aimed at enhancing the trading of industrial plastic products in the region.
Resintech’s collaboration with SEDC Energy which is dedicated to driving Sarawak’s renewable energy (RE) initiatives also aligns with the state’s ambitious goals in green energy and sustainability.
This partnership complements SEDC Energy’s efforts in building a sustainable ecosystem which includes ground-breaking projects such as the production of sustainable aviation fuel (SAF) from algae cultivation in Sarawak, thus positioning the East Malaysian state at the forefront of RE development in Southeast Asia.
The proposed JV follows a memorandum of understanding (MoU) signed on June 15 last year between Resintech Plastics (Sarawak) Sdn Bhd and SEDC Energy.
This partnership leverages the combined expertise of both entities by positioning the new JV company, Johan Intan, to capitalise on emerging opportunities in the industrial plastics market.
As part of the agreement, SEDC Energy will subscribe to 40,000 new ordinary shares in Johan Intan which amounts to a 40% equity stake with Resintech holding the remaining 60%.
“This JV will boost Resintech’s trading capabilities and open doors to new opportunities in Sarawak’s rapidly growing industrial sector,” commented Resintech’s managing director Datuk Dr Teh Kim Poo.
“By combining our industry expertise and SEDC Energy’s strategic position in Sarawak, we aim to drive value for both our stakeholders and the local economy.”
On the longer term, Resintech believes that its JV with SEDC Energy will significantly strengthen the group’s financial performance by expanding market opportunities and securing a steady revenue stream from the Sarawakian market.
The JV will initially focus on trading industrial plastics products with the possibility of expanding into manufacturing based on future market demands.
Moreover, the JV also reflects Resintech’s on-going commitment to environmental, social and governance (ESG) principles by positioning the company as a leader in sustainable industrial practices while supporting Sarawak’s transition to cleaner energy solutions through initiatives like algae-based SAF production.
At 2.57pm, Resintech was up 0.5 sen or 0.81% to 62 sen with 369,500 shares traded, thus valuing the company at RM121 mil. – Sept 17, 2024
