KUALA LUMPUR: Tex Cycle Technology (M) Bhd's subsidiary, Tex Cycle (P2) Sdn Bhd today agreed to collaborate with Econas Resource to Energy Sdn BHd (ER2E) to grow its scheduled waste management business.
Tex Cycle group chief executive officer Gary Dass Anthony Francis said the partnership will enable the company to leverage ER2E's exceptional capabilities in waste management solutions, enhancing its service delivery and efficiency.
"Together, we aim to set new industry standards for resource recovery, and environmental management, driving innovation and excellence in our operations. We believe this collaboration will not only enhance our market presence but also significantly contribute to a more sustainable future with our core waste management processes as well as boost our revenue significantly," he said.
ER2E is known for its advanced secured landfill and upcoming incineration facilities and a comprehensive waste management complex in Pengerang, which specialises in the collection, recovery, and disposal of scheduled waste.
By collaborating with ER2E, Tex Cycle noted it will be able to use their end-of-life waste disposal facilities namely the secured landfill and incineration plant to extend the range of waste management services to customers, enhancing the group's ability to manage and process diverse waste types more efficiently.
Under the collaboration, Tex Cycle will utilise its established market presence to support ER2E in promoting and expanding its waste management operations.
Tex Cycle noted it will try to secure up to 5,000 tonnes of scheduled waste management works per month for ER2E, ensuring first priority for disposal and processing at ER2E' facilities.
Additionally, Tex Cycle will provide technical support and act as a third-party transporter, enhancing ER2E's operational efficiency, where applicable.
Conversely, ER2E will engage Tex Cycle for similar volumes in waste recycling and recovery projects, granting them priority to undertake and manage these projects.
ER2E will also extend strategic and operational support to Tex Cycle, reinforcing the collaboration's goal to optimise each party's core competencies in waste management.
"Our collaboration with Tex Cycle is a remarkable milestone that leverages our combined strengths in waste management to innovate and enhance environmental practices across Malaysia," ER2E executive chairman Datuk Mohd Shafiee Mohd Sanip said.
"By joining forces, we aim to accelerate the implementation of cutting-edge waste treatment technologies, efficiencies and solutions, significantly advancing our shared vision for a cleaner, more sustainable future. We are confident that this partnership will produce substantial benefits for both our operations and the communities we serve," he added.
Tex Cycle said the collaboration is expected to have a positive impact on its revenue streams and complements its existing business model, while enhancing the ability to provide comprehensive services in this sector.
Tex Cycle's share price was up two per cent to RM1.31 a share at midday break, giving it a market capitalisation of RM335.6 million.