KUALA LUMPUR: Diversified plastic pipes and fittings company Resintech Bhd plans to expand its footpeint in Sarawak's industrial plastics sector by setting up a joint venture with state enterprise SEDC Energy Sdn. Bhd.
In a statement today, the company said its unit, Johan Intan Sdn Bhd and SEDC Energy entered into a share agreement to establish a joint venture that will initially focus on trading industrial plastics products, with the possibility of expanding into manufacturing based on future market demands.
SEDC Energy is a wholly-owned subsidiary of the Sarawak Economic Development Corporation (SEDC), which is dedicated to driving the state's renewable energy initiatives.
Resintech believes that the joint venture with SEDC Energy will significantly strengthen the company's financial performance by expanding market opportunities and securing a steady revenue stream from the Sarawak market.
The joint venture also reflects Resintech's ongoing commitment to environmental, social, and governance (ESG) principles, positioning the Company as a leader in sustainable industrial practices while supporting Sarawak's transition to cleaner energy solutions through initiatives like algae-based Sustainable Aviation Fuel (SAF) production.
The share agreement was signed by Resintech executive director Datuk Teh Leng Kang, and SEDC Energy chief executive officer Robert Hardin.
The partnership complements SEDC Energy's efforts in building a sustainable ecosystem, which includes groundbreaking projects such as the production of SAF from algae cultivation in Sarawak, positioning the state at the forefront of renewable energy development in Southeast Asia.
The proposed joint venture follows a Memorandum of Understanding (MoU) signed on June 15, 2023 between Resintech Plastics (Sarawak) Sdn. Bhd. and SEDC Energy.
It leverages the combined expertise of both entities, positioning the new joint venture 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, amounting to a 40 per cent equity stake, with Resintech holding the remaining 60 per cent.
"We are excited to join forces with SEDC Energy to establish a stronger presence in Sarawak. This joint venture will boost Resintech's trading capabilities and open doors to new opportunities in Sarawak's rapidly growing industrial sector. 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," Resintech managing director Datuk Dr. Teh Kim Poo said.