KUALA LUMPUR: Mah Sing Group Bhd, through Mah Sing Plastics Industries Sdn Bhd, has awarded a RM12 million solar photovoltaic (PV) installation project to Plus Solar Systems Sdn Bhd.
Plus Solar will outfit Mah Sing Plastics' smart factory in Klang, Selangor.
Mah Sing, in a statement today, said it was fast-tracking the implementation of its sustainable manufacturing agenda in line with the 2021 Budget's focus on sustainability as one of its four broad themes.
The first phase of PV installations was completed in 2020 and has gained savings of 7.0 per cent per annum in electricity bills, while the second phase of PV installations will commence early next year.
"The government's incentives for sustainability has made it much easier for companies like Mah Sing Plastics to move towards renewable energy through solutions like PV installations.
"The Green Investment Tax Allowance (GITA) allows us to claim 100 per cent of this investment upon filing our tax submissions," said Mah Sing Plastics executive director Lee Foo Keong.
He said this effectively worked out to be a 24 per cent savings based on the given corporate tax rate.
"With GITA, the Net Energy Metering (NEM) scheme and the monthly savings on electricity bills, we anticipate that this PV installation will pay for itself in four years. The quick rate of return makes this a really sound investment," he said.
Lee said Plus Solar had proven to be one of the strongest energy partners for the company's consultative approach to sustainable energy.
Mah Sing Plastics aims to have lower environmental impact in every phase of their life cycle which includes production, distribution, transportation, waste collection, treatment and end-of-life disposal.
"We are proud to have earned the trust of Mah Sing Plastics, and to be a part of their transition towards clean energy," said Plus Solar founder and chief executive officer Ko Chuan Zhen.
He said Plus Solar would continually building its total installed capacity, with plans of overseas expansion, while adding that the current partnership was a part of its larger agenda of driving the next energy revolution.
"Mah Sing's multiple investments into clean energy is expected to offset a total of 2,936 tonnes of carbon dioxide, equivalent to planting 14,680 trees. This is a step in the right direction for all corporates aiming to embrace sustainability as one of their core competencies," Ko added.