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Supermax to build advanced manufacturing facility in Texas, US

Supermax Corporation Bhd via its US-based subsidiary Maxter Healthcare Inc will build an Advance Manufacturing Facility in Brazoria County, Texas, United States.

Supermax said the new facility will be the company’s 18th manufacturing plant worldwide and its first in the United States.

According to the company, the new 215-acre manufacturing facility will showcase cutting edge capabilities through expanded use of artificial intelligence and robotic engineering and will comprise a total of eight buildings.

“Phase one will begin construction in the second quarter of 2022 with glove production expected to start in the second quarter of 2023,” it said in a Bursa Malaysia filing today.

The company had earlier announced an investment of US$350 million (RM1.4 billion) in the first of four construction phases.

The Supermax facility in Texas will cater to at least 10 to 15 per cent of annual medical nitrile glove demand in the US over the next two to four years in the first phase alone. The second phase will follow closely, meeting 20-25 per cent of demand and consumption in the US over the next four to six years.

Supermax founder and executive chairman Datuk Seri Stanley Thai said manufacturing within the US has always been a desire of the company.

Supermax group has engaged ARCO/Murray, the top builder for warehouse and distribution space (according to Engineering News-Record) for this project.

Supermax exports to 165 countries and has distribution centres and operations in the United States, Canada, UK, Ireland, Brazil, Japan, Hong Kong and Singapore.

Source: Bernama

Supermax to build advanced manufacturing facility in Texas, US


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Thong Guan Industries Bhd is exploring an opportunity to set up a joint venture (JV) in the mid-western region of the United States that is intended for the US market.

The board of Thong Guan agreed on a possible expansion into the world’s biggest market for stretch films, said CIMB-CGS in a report. However, the Russia-Ukraine war might cause systemic risks to Thong Guan’s sales demand, input costs and margins, said the report.

As the world’s biggest economy, the US is also the biggest user of stretch films. The report said Thong Guan believes the US uses around 1.2 million tonnes of stretch films per annum. In comparison, the group’s annual production of stretch film last year was 78,000 tonnes.

The group is still doubling its expansion capacity in order to reach its forecast of RM2bil in turnover by financial year 2026. In its financial year 2021, revenue amounted to RM1.2bil.

Thong Guan plans to install another production line for stretch films before the end of the first quarter of its 2022 financial year, while the construction of its new courier bag production unit was completed at the end of last year.

“While details on Thong Guan’s US plant are still in the works, we note that this possible endeavour should not strain its balance sheet.

Its cash pile of RM292.9mil at the end of 2021 dwarfed its total borrowings of RM181.2mil.

The report said the interest that Thong Guan pays is almost 70 times less than its earnings before interest and tax of RM127.1mil.

“That gives a lot of headroom to gear up if it sees fit,” said the research report.

The broker is keeping its “add” call but lowered its target price for the stock to RM4.54 from RM5.70 as Thong Guan is believed to have the ability to raise selling prices of its goods to deal with inflationary pressure.

Source: The Star

Thong Guan poised to expand into US market


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Main market-listed Caely Holdings Bhd hopes to set up a joint-venture (JV) in Indonesia this year to increase its production capacity to cater to the growing global demand for lingerie.

Chief executive officer Gok Ching Hee said the company is currently in the midst of finalising the terms and conditions of the agreement with a potential JV partner, that would then invest in a plant in the republic.

“Our JV partner will invest in the plant, which will likely be ready in May or June this year. We target to sign the JV agreement by the end of March,” he told Bernama.

Gok said Caely’s current main export destinations for its original equipment manufacturer undergarment products are Germany, the United States and Canada, however, it has recently been getting more enquiries from companies in Turkey, France and Australia.

He pointed out that the enquiries from these companies were already double Caely’s existing production capacity, which led to the company’s decision to expand further, with the plant in Indonesia aiming to increase capacity threefold, compared with its factory in Teluk Intan, Perak.

“We believe that this recent large amount of orders we are getting is due to companies shifting away from sourcing their products in China and that we are benefitting from the trade war in the international arena.

“Judging by the increasing momentum of orders we are getting, we are confident that we will use up the capacity of the Indonesian plant,” he said.

Caely, which was established in 1986 to produce women’s intimate apparels, had allocated RM5 million for working capital in October last year to diversify its products including the production of fabric face mask.

Gok said the company would also utilise part of this investment to produce active wear, nightwear and kids wear, soon.

“We have signed a licensing agreement with Disney and this has opened a lot of opportunities for us because we can produce Disney brand apparels,” he said.

He added that the company had planned to eventually move its lingerie manufacturing to Indonesia while its Malaysian plant would focus on producing face masks and other apparels.

Source: Bernama

Lingerie maker Caely to set up JV in Indonesia to ramp up production


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Gading Kencana Sdn Bhd, one of the largest solar farm operator in Malaysia, is collaborating with Saudi Arabia’s March Global LLC to develop US$1 billion (RM4.2 billion) solar farms in the Middle East, Africa and Asean regions.

The memorandum of understanding (MoU) was inked during the Expo 2020 Dubai.

In a statement yesterday, Gading Kencana managing director Datuk Ir Muhamad Guntor Mansor Tobeng said the partnerships covered activities, transactions, relationships, contracts and works related to developing solar farms with a primary focus on the Middle East and North Africa (Mena) region.

“The Mena region was chosen because it has great potential in renewable energy exploration in line with current global developments that want to reduce dependence on conventional energy sources.

“Besides that, this MoU is also a recognition to companies from Malaysia that prove that Malaysia has expertise in the field of renewable energy, especially solar, which is able to play a role globally through such cooperation,” he said.

He said the first collaboration between Gading Kencana and March Global is to develop a solar farm in Khulais, Saudi Arabia with a capacity of 100 megawatts followed by the exploration of investment potential in Ghana and several countries in North Africa.

For the Asean region, he said Gading Kencana and March Global aimed to develop solar farms in Vietnam.

Muhamad Guntor said the MoU enabled Malaysian companies such as Gading Kencana to step onto the international stage by taking advantage of developments in the global renewable energy sector with new generating capacity reaching almost 280 gigawatts by 2020, about 45% higher than 2019.

He said according to the International Energy Agency (IEA), the performance marked the highest year-over-year increase since 1999.

“Global electricity consumption capacity from renewable energy sources is projected to increase by more than 60% between 2020 and 2026, reaching more than 4,800 gigawatts.

“Very high capacity additions will be the ‘new normal’ in 2022,’’ he added. 

Source: Bernama

Gading Kencana inks US$1b solar farms partnership with Saudi’s March Global


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ABLE Global Bhd is seeing a surge in enquiries for its products from the Americas, particularly from the Caribbean islands and the surrounding areas such as Haiti, Jamaica, Venezuela and even Port Louis in Mauritius, which is off the eastern coast of Africa.

These countries are not the typical customer base for the majority of Malaysian companies, but they are part of Able Global’s customer portfolio, which is set to grow further with its recently commissioned production plant in Mexico.

If the name “Able Global” sounds unfamiliar, it is probably because investors would have known it as Johore Tin Bhd previously. The group recently underwent a name change to better reflect the change in its main business — from tin can packaging to food and beverage (F&B).

The name change was also to show the continuing investment it is putting into expanding the F&B segment, says CEO Edward Goh in an email reply to The Edge.

The group’s investment in Mexico, under Able Dairies Mexico, is a result of a joint venture between Able Global’s wholly-owned subsidiary Able Dairies Sdn Bhd and three Mexican shareholders. Able Dairies holds 43.13% equity interest in the venture.

“We are targeting 30% to 40% of our production capacity to be sold in Mexico while the remainder can be sold to the US, South America, Central America and the Caribbean. If the freight rate is advantageous, we may even ship to South Africa,” says Goh.

It targets to break even with a 30% utilisation rate by the first year of operations.

At present, the group is selling its products from Malaysia to smaller chain stores in the US, while in Mexico and Venezuela, Able Global’s products are retailed in Walmart through its partner Calkins, Burke and Zannie de México (CBZ).

“We could not sell in larger quantities [to the US] due to the freight rate being more than US$10,000 (RM42,167) (per container) now. Shipping from Mexico is nearer, we can send to the border via train and that will reduce the cost significantly.

“Right now, we have a lot of enquiries coming from the Caribbean islands and the surrounding area such as Haiti, Jamaica, Port Louis, Venezuela, as well as the US, but we are not selling to them on a big scale [yet].

“We have existing customers in the Caribbean islands and [our products] will be exported from Mexico in the future. We are also trying to develop new markets in Haiti, Jamaica, Peru, Venezuela and other countries around this region,” adds Goh.

This is where the commissioning of the production plant in Mexico comes into play for the group’s ambition to stamp its mark on the Americas, despite several setbacks in getting it up and running due to the Covid-19 pandemic.

With the plant operating since July, Able Global will expand into markets in the Americas and Caribbean.

Goh says the group is in the midst of finalising the audit and paperwork with the Mexican authorities and that Able Global’s marketing team has been working hard at contacting customers to take orders for the export market.

Able Global has already obtained the Safe Quality Food (SQF) certification for Able Dairies Mexico in order for the group to list its items in Walmart and other big supermarket chains in the US.

“This [SQF] opens a new revenue stream for our group, and we believe this will also strengthen our foothold in the North American market,” says Goh.

The next step is for the said supermarkets, such as Walmart, to conduct an audit on the factory. Goh says Walmart is scheduling an audit with Able Dairies Mexico.

Able Global is also awaiting the issuance of the health certificate from the Ministry of Health in Mexico following the completion of its audit, in order for Able Dairies Mexico to export products from its facilities. The health certificate is a prerequisite by importing countries before a product can be sold on their shores.

Another important piece of the puzzle for Able Global’s aspirations in the Americas is its partners. The group has the advantage of having CBZ — a wholesale distributor of brands as well as food producer — as its partner.

CBZ is an authorised supplier to Walmart and other American chains, says Goh, so this means Able Global has a ready channel to the big supermarkets as soon as the necessary certifications are obtained.

Aside from successfully commissioning its production plant in Mexico, Able Global is also working on expanding its product portfolio currently, to move beyond sweetened condensed milk, evaporated milk and milk powders.

Soon, the group will be adding UHT milk to its portfolio. The equipment is currently being installed and is set for commissioning in a few months. The group is also looking at the popular plant-based milk alternatives.

“One of the products that we are looking to add is plant-based milk alternatives. They are gaining tremendous interest globally and sales are forecast to grow at a 9.4% compound rate annually from 2020 to 2030.

“Six of the top 10 global markets are situated in Asia-Pacific. Notably, the plant-based beverage category has one of the fastest growth in the post-pandemic era due to changes in customer perception. We see it as a perfect fit for our product portfolio and are looking into this,” notes Goh.

The outlook for Able Global’s F&B segment seems bright, with demand being consistently strong despite the volatility in raw material prices, shares Goh.

Selling prices are adjusted monthly to better reflect costs, he adds.

Notably, Able Global’s dairy business makes up about 75% of group revenue, with the remainder coming from its tin can manufacturing business, which was once the group’s bread and butter. Able Global saw its revenue fall 13% to RM502.26 million in the financial year ended Dec 31, 2020 (FY2020) from RM579.79 million in FY2019, while net profit was down 17% year on year (y-o-y) to RM39.49 million from RM47.48 million.

The huge increase in steel prices, opines Goh, will only decrease demand for tin cans slightly in the near term. The group has managed to pass on the raw material cost for its tin cans to customers, similar to its competitors, given how rapidly steel prices have increased.

“In the past, when the price went up 2% to 3%, we would just absorb it. But this time around, it has increased by 50% to 55% from a year ago. There is no company that can absorb this kind of increase,” he says.

In the long term, it is likely that customers will look for alternative packaging materials if steel prices remain elevated, adds Goh.

While it has pivoted its main business, Goh says the group’s tin manufacturing segment will remain and there are no plans to hive off this operation.

“However, our F&B segment will be one of the important core businesses. We have invested a lot in it, and we also have a lot of technical and supporting teams in our F&B segment,” he says.

Interestingly, the group is also planning to diversify into industrial property development given its belief that demand for warehousing and manufacturing is on the upswing in selected sectors. It sees continued demand for industrial land and properties moving into 2022 and beyond.

For 3QFY2021, Able Global’s net profit dropped 44.2% to RM8.77 million from a year ago, while revenue shrank 16.2% y-o-y to RM117.83 million.

The results were dragged down by lower manufacturing output from its F&B segment owing to the Full Movement Control Order, which restricted the workforce to 60%. The company also had to be closed for almost three weeks in July owing to the Enhanced Movement Control Order.

Able Global’s share price has shed 19.71% year to date to close at RM1.58 last Thursday, valuing the group at RM482.9 million.

Source: The Edge Markets

Able Global looking to stamp its mark on the Americas


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Rubber glove maker Supermax Corporation Bhd plans to invest US$350 million (US$1= RM4.21) in the first phase of its manufacturing facility in the United States (US).

In a statement to Bursa Malaysia today, the company said the 87-hectare manufacturing facility in Brazoria County, Texas, would be undertaken by its US-based subsidiary, Maxter Healthcare Inc.

It said the four-phase manufacturing facility is expected to produce 400 million gloves per month in each phase, with phase one construction to begin in the first quarter (Q1) of 2022 and starts production by Q4 2022.

“When all the four phases are completed, the total installed production capacity would be a whopping 1.6 billion gloves per month, or 19.2 billion gloves per annum,” it said.

According to Supermax, phase one facility would consist of the group’s North America manufacturing headquarters, a research and development centre, trading centre and a full-fledged employee facility centre.

“This project will be Supermax’s 18th manufacturing facility worldwide and the first in the US,” it said.

The company said its board of directors had previously approved a capital expenditure of US$550 million for this investment.

Founder and executive chairman Datuk Seri Stanley Thai said the manufacturing plant would be equipped with world-class capabilities, such as automatic, robotic engineering manufacturing with Artificial Intelligence and Industry Revolution 4.0.

“Our manufacturing facilities will also emphasise on renewable energy and waste water management,” he said.

Supermax Healthcare Inc chief executive officer CK Tan said the manufacturing facility, when operational, would strengthen the US personal protective equipment (PPE) supply chain by building capacities.

“We will be capable of catering to at least 10 per cent to 15 per cent of the total annual medical glove imports into the US over the next two to four years.

“As our capacity increases, we will be able to meet 20 per cent to 25 per cent of the demand and consumption in the US over the next four to six years,” he said.

Supermax Healthcare Inc is also a subsidiary of Supermax based in the US.

Source: Bernama

Supermax to invest US$350m in phase 1 of US manufacturing plant


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Guan Chong Bhd plans to invest RM50 million in capital expenditure (capex) in the next two years for its Germany plant Schokinag Holding GmbH.

In a statement today, the company said the capex will mainly fund capacity expansions for the Mannheim-based plant, aiming to ride on the recovery in Europe as borders open up in the continent.

The company said the growing revenue contribution from Schokinag also necessitates the expansion.

Managing director and chief executive officer Brandon Tay Hoe Lian said the company finally made its long-overdued visit to Schokinag in October and is happy to physically meet the team to discuss on operation optimisations and growth strategies.

“The better performance in Schokinag, even without new capacity put in, is not only a good indication of economic recovery in the European region, but also a reflection of our German team in growing our market share in industrial chocolate in Europe.

“Hence, we believe the decision to expand Schokinag’s capacity is necessary to support the team in their growth ambition, and we will continue to evaluate other expansion options where needed to capture the ongoing opportunities,” he said.

Meanwhile, Guan Chong’s net profit eased 26.3 per cent to RM34.46 million in the third quarter (Q3) ended September 30, 2021 from RM46.78 million recorded in the same quarter a year ago.

The company said the lower net profit recorded for Q3 was mainly due to the higher freight costs and competitive margins that were committed last year.

Revenue in the same quarter increased 18.6 per cent to RM998.1 million from RM841.59 million, backed by Schokinag’s contributions and better overall sales tonnage.

For the nine month period, Guan Chong’s net profit eased 40.5 per cent to RM104.74 million from RM175.92 million, while revenue grew 6.5 per cent to RM2.83 billion from RM2.66 billion.

Moving forward, Tay said the company is seeing signs of demand for cocoa products and ingredients recovering in tandem with economies reopening and higher vaccination rates worldwide.

“The commencement of the Ivory Coast factory mid-2022 will also be timely to capture the growing demand trend,” he added.

Source: NST

Guan Chong to invest RM50mil in capex for the next two years


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Robust demand for power infrastructure fuels growth

As a niche utility infrastructure company with strong expansion plans, Pestech International Bhd is an alternative small-cap play to the domestic utility sector.

It is also a cheaper proxy to the other “big boys” in the sector, judging by forward valuations as compiled by Kenanga Research.

Pestech, which has been deriving its revenue almost entirely from Malaysia and Cambodia, is seeking a bigger presence in the high-growth South-east Asian region.

To achieve this, the group aims to capitalise on the robust demand for power infrastructure in countries like Cambodia, the Philippines and Papua New Guinea.

Given its proven track record of commissioning over 565km of electric transmission lines and cables, Pestech should find it well-positioned to bid for such regional projects.

Pestech, whose shareholders include Norges Bank or the manager of Norway’s Pension Fund, is also going big into the rail electrification business regionally.

Apart from Malaysia, it is already eyeing regional rail projects in Asean, leveraging on the group’s existing full fleet of rail electrification plants and machineries.

In Malaysia, Pestech has been involved in the Gemas-johor Bahru Southern double track project and the Mass Rapid Transit Line 2.

Hong Leong Investment Bank (HLIB) Research has previously said that Pestech has “good chances” to secure contracts for upcoming Malaysian mega-rail projects such as MRT Line 3, the East Coast Rail Link, the high-speed rail and the Klang Valley Double Tracking (Phase 2).

The power infrastructure and rail electrification segments contributed 61% and 35% of Pestech’s revenue in the financial year ended June 30, 2021 (FY21), respectively.

Going forward, Pestech also hopes to take advantage of the growing opportunities in the renewable energy (RE) and electric vehicle (EV) infrastructure segments regionally.

In its 2021 annual report, the group said it wants to venture further into the area of photovoltaic solar generation, waste-to-energy, sustainable mobility solutions and autonomous non-fossil fuel based distributed microgrid

power supply solutions.

It is noteworthy that Pestech’s work for its first large-scale photovoltaic solar plant (LSS) of 20MW located in Bavet City, Svey Rieng Province, Cambodia, has started.

Pestech’s aim to leverage on RE opportunities came at the right time, as Asean targets to achieve a RE capacity of 35GW to 40GW by 2025.

On the EV infrastructure front, Pestech is looking at providing EV charging stations in commercial buildings, condominiums and along the highways.

HLIB Research has previously said that Pestech’s venture into EV infrastructure bodes well with Malaysia’s Low Carbon Mobility Blueprint 2021-2030 to accelerate national EV adoption rate.

In FY21, Pestech reported double-digit growth in both revenue and bottom line, despite the Covid-19-related challenges.

Revenue hit a record high as it grew by 11.5% year-on-year (y-o-y) to Rm889mil,

while net profit expanded by almost 29% y-o-y to Rm66.2mil.

Profit margin in FY21 also improved to 12%, as compared to 8% in the previous financial year.

Moving forward, the group is well positioned to sustain its financial performance momentum, backed by its outstanding order book of Rm1.76bil as at June 30, 2021.

“The contribution of the order book continued to be diversely generated from among the Asean region in line with the strategy of the group to have a well-spread business exposure in this geographical area,” it said in the annual report.

Since the beginning of 2020, Pestech has secured five contracts cumulatively worth Rm438.61mil, which include a traction power supply contract for the Malaysia-singapore Rapid Transit System.

Recently, Pestech won a Rm157mil contract from the National Grid Corp of the Philippines (NGCP) for the South Luzon Substations upgrading project.

Under the contract, the group will deliver engineering, procurement, construction and commissioning (EPCC) works involving seven substations, with project duration ranging from 180 to 600 days.

It is noteworthy that this is Pestech’s sixth contract from the NGCP since 2016.

Kenanga Research analyst Teh Kian Yeong is positive about the contract win and sees the award as a sign of NGCP’S confidence in Pestech to deliver the project.

“Pre-tax profit margin for this new contract is still within the 9% and 11% range.

“We see vast potential in the Philippines for transmission line and substation EPPC projects, as 30% or 28 million of its population are still without access to electricity supply,” he says in a note issued on Nov 23.

Looking ahead, Teh expects a “seasonally weaker” first-half of FY22. This is especially in Cambodia, which is facing a rainy season, deterring project progress.

“We continue to like this niche utility infrastructure play which could potentially benefit from the revival of mega-projects domestically and the fast-growing energy infrastructure development market in Indo-china.

“As such, we continue to rate the stock an ‘outperform’ with an unchanged target price of RM1.39,” says Teh.

Year-to-date, the Pestech stock is up by 6.4%, outperforming key utility players such as Tenaga Nasional Bhd, YTL Power International Bhd and Malakoff Corp Bhd that have declined in the same period.

Yesterday, Pestech reported that its net profit for the first quarter of FY22 ended Sept 30 fell by 21.2% y-o-y to Rm11.87mil.

Revenue dropped by 16.5% y-o-y to Rm207.81mil.

“The group’s revenue reflects the stage of project progress during the quarter under review”, says Pestech.

Source: The Star

Pestech going big into S-E Asia


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Malaysia has continued to expand its investments in Indonesia via the signing of five memorandums of understanding (MoU) and agreements that will be sealed by the private sectors of both countries worth US$3.1 billion today, said Prime Minister Datuk Seri Ismail Sabri Yaakob.

The premier said Malaysia’s total investments in Indonesia amounted to US$12.53 billion while Indonesian investments in Malaysia were worth US$1.16 billion in the second quarter of this year.

“I believe Malaysian investments in Indonesia are big,” he told reporters in a media conference with Indonesia’s President Joko Widodo at Istana Bogor in conjunction with his inaugural three-day official visit to the country which started on Tuesday.

Ismail Sabri also called for the involvement of Malaysian companies in the development of Kalimantan, which shares a border with Sabah and Sarawak.

Indonesia is building its new capital in eastern Kalimantan.

The country is an important trade and strategic partner for Malaysia, with the total trade between them worth US$15.67 billion in 2020, according to the prime minister.

Source: Bernama

Malaysia expands investments in Indonesia with signing of MOUs, agreements worth US$3.1 bln


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Pestech International Bhd has entered into a memorandum of understanding (MoU) with Gartena Holdings Ltd to explore the opportunity to cooperate in proposing and developing Waste-2-Energy solutions in the ASEAN region.

Gartena is a company operating in the United Kingdom and Sweden which has developed and holds the worldwide patent for the world’s technically advanced, efficient and environmentally friendly Waste-2-Energy process.

According to Pestech’s bourse filing on Wednesday, both parties wish to cooperate in proposing and developing Waste-2-Energy solutions in the ASEAN region under the MoU. 

Pestech said it will have the primary responsibility for new client selection, including identifying potential projects, arranging meetings and preparing potential bidding documents. 

In addition, Pestech — an integrated electrical power technology company — will also be responsible for project management and overall construction of the plant with any possible technology localisation.

Meanwhile, Gartena will be responsible for providing Pestech with technical and marketing materials, applicable cost estimates and appropriate content for agreements and other project documentation.

Gartena will also provide all necessary technical drawings, engineering services, localization of the operational processes of the Waste-2-Energy plant, and all relevant technical know-how of the Waste-2-Energy solution for the Gartena process.

“Pestech and Gartena are collaborating to recycle the energy contents from wastes (either general waste, scheduled waste or medical waste) to generate electricity instead of dumping [them in] the landfill [which] will bring hazardous effects to the environment. If granted, it will bring a positive sustainable development effect to the society,” added Pestech.

Shares of Pestech closed unchanged at RM1.17, valuing the integrated electrical power technology company at RM890.57 million.

Source: The Edge Markets

Pestech signs MoU with UK-Sweden operating firm to develop Waste-2-Energy solutions in ASEAN region


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Malaysia remains one of the top trading partners and investment sources of the Philippines, its Secretary of Department of Trade and Industry (DTI) Ramon M. Lopez said.

He said despite the pandemic, Malaysian companies’ interest to invest or expand their current businesses in the Philippines remain strong.

“In 2020, Malaysia is ranked as the 10th trading partner of the Philippines, with balance of trade in the favour of Malaysia. In terms of investment, Malaysia was the 12th source of IPA-approved investments, registering a growth of 43.90 per cent from previous year.

“And this year (Jan to June 2021), Malaysia is placed as the 6th source of FDI (foreign direct investment),” the Philippine Trade and Investment Centre Kuala Lumpur (PTIC-KL) quoted him as saying in a recorded keynote message at the virtual Second Philippine Investment Forum for Malaysia held on Thursday.

According to the statement from PTIC-KL, Lopez assured that the Philippines is open for business, and expressed gratitude to Malaysia for its continued confidence and interest to invest in the Philippines.

He also encouraged more investments from Malaysia in five priority industries – manufacturing, agribusiness, services, infrastructures and construction, and energy.

The statement said that the Philippines also encourged Malaysian investments in halal-specific sectors, from food and beverage companies to Islamic banks.

“Malaysian companies are invited to invest in the Philippines to further grow the Halal industry and serve the Muslim (as much as 10 to 12 million Filipinos) and non-Muslim population.

“It was reported that an investment from Malaysia worth US$130 million, covering some sectors above, has been recently committed,” it added.

Meanwhile, it quoted Commercial Attache at the PTIC-KL Katrina Banzon as saying that the Philippines had received US$1.66 billion worth of Investment Promotion Agency (IPA)-approved investments from Malaysia between 2018 and 2020 in the five priority industries.

The forum was part of the one-day Philippine Investment Forum 2021, held to promote the Philippines as an ideal investment destination and partner for companies in Malaysia.

Among the highlights at the forum were on the Philippines Economic Zone Authority (PEZA) as a one-stop and non-stop shop for investors.

It added that a presentation on the recently-enacted tax and incentives regime under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE Act) of 2021, which lowers the Corporate Income Tax to 25 per cent and bestows the President power to grant customised incentives for big ticket investments, had also drawn interest from participants.

The Philippine Investment Forum 2021 was organised by the PTIC KL and Philippines Economic Zone Authority (PEZA) in collaboration with the the Philippines’ Department of Trade and Industry in Kuala Lumpur and the Embassy of Malaysia in Manila.

The event was well-attended by potential investors and strategic partners, including government officials, company executives and private sector representatives from Malaysia and other countries in the region, the statement said.

Source: Bernama

Malaysia One Of Top Trading Partners And Investment Sources Of The Philippines


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The Philippines is inviting more Malaysian entrepreneurs and companies to invest in the country, specifically in emerging economic sectors prioritised by the government.

Commercial Attache at the Philippine Trade and Investment Centre (PTIC) in Kuala Lumpur Katrina Banzon said among the new sectors for investment opportunities that Malaysian investors can tap into include automation and digitalisation, infrastructure (cold chain facilities and ICT-related infrastructure), information technology-business process management (IT-BPM) and in the healthcare industry such as manufacturing of personal protective equipment (PPE) and vaccine manufacturing.

She said as Malaysia is an authority in the halal industry, the Philippine government also encouraged more halal-specific investments from Malaysia – from the food and beverages sector to Islamic banking – to help grow its halal market segment that is currently estimated to serve some 12 million Muslim Filipinos, as well as the non-Muslim population.

“We’d like to see and invite partners from Malaysia to invest in these sectors, especially where Malaysia has expertise,” she said in an interview with Bernama.

She said Malaysia’s current investments are mainly in the manufacturing, agribusiness, services infrastructure projects, property development and construction services and energy, while the renewable energy sector also have recently attracted high interests from Malaysian investors.

In 2020, Malaysia is ranked the 10th largest trading partner of the Philippines, registering total bilateral trade amounting to US$5.79 billion – with balance of trade in the favour of Malaysia.

In terms of investment, Malaysia is ranked at number 12 for source of approved investments, registering a growth of 43.90 per cent from previous year.

“Also, we are happy to share that despite the pandemic, many companies in Malaysia have signified interest in investing in and expanding their businesses in the Philippines,” she said.

According to the data from the Phillipines Central Bank, net foreign direct investment (FDI) from Malaysia to the Philippines in the first five months of this year totalled US$16.5 million – a 76.6 per cent growth (from the previous year) and placing Malaysia as the sixth source of FDI.

Banzon said the affirmative strategies taken by the government had put Philippine economy well on the road to recovery post-pandemic era.

In Nov last year, the government launched “Make it Happen in the Philippines”, an investment promotion programme that aims to attract inflow of investments in five priority sectors namely aerospace, automotive, electronics, copper and nickel, and IT-BPM.

With the pandemic and its economic impact, the Department of Trade and Industry (DTI) had further refined its priorities to rebuild the Philippine economy through the industrial strategy known as ReBUILD PH! (REvitalising BUsinesses, Investments, Livelihoods and Domestic Demand), which is aimed at jumpstarting and reinvigorating the economy by revitalising consumption and enhancing production capacity.

“Philippine exports have also sustained a rebound, better than pre-pandemic levels,” Banzon said.

She pointed out that Philippine’s recorded year-on-year (YOY) exports this year reached US$6.42 billion, which is higher than the pre-pandemic value of US$6.25 billion in 2019, while for the year-to-date (YTD) values, its exports in 2021 amounted to US$42.39 billion as compared to US$40.82 billion in 2019.

As for net FDI, the year-to-date amount stood at US$3.5 billion, which is 37.8 per cent higher than the US$2.53 billion recorded for the comparable period of 2020, and even slightly higher than the pre-pandemic 2019 level of US$3.4 billion, she added.

Meanwhile, unemployment rate is at 6.9 per cent in July 2021 – the lowest since the beginning of the pandemic in April 2020, she said.

“While the COVID-19 pandemic disrupted the growth momentum of the Philippines, we are already seeing signs of recovery.

“This show, among other factors, the strong and stable Philippine economy and the resilient nature of the Filipinos – the main drivers of the country’s success,” she added.

Source: Bernama

The Philippines invites more investments from Malaysia in new growth sectors


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Investors from Malaysia, New Zealand and United Arab Emirates (UAE) seeking to engage with strategic business partners in Australasia, Middle East and ASEAN now have a new avenue to do so.

A joint initiative between New Zealand Malaysia Business Association (NZMBA) and the Malaysian Business Council based in UAE (MBC,UAE) provides an avenue to establish high-level strategic business ties and help strengthen people-to-people contact.

Founder and President of NZMBA Dave Ananth said the joint initiative will see both parties enhancing economic and investment activities amongst Malaysia, New Zealand and UAE markets.

“The bilateral NZMBA-MBC team serves as an influential platform for businesses in Malaysia, New Zealand and UAE to seek new opportunities and engage with strategic partners amongst the regions,” he said in a statement to Bernama.

He said a cooperative agreement was signed by him and Chairman of MBC, UAE, Fahmy Ansara to provide opportunities for both sides to jointly promote halal products, Shariah finance and infrastructure projects in New Zealand.

“We also agreed to seek greater collaboration in New Zealand’s halal certification for meat and dairy commodities for the purpose of export to Malaysia and Middle East market, besides infrastructure projects involving the government and private sector in the island nation,” he added.

Meanwhile, Fahmy said the joint initiative involves exchange of high value strategic networking, technologies, and knowledge sharing between both parties.

The cooperative agreement invites all Malaysian Business Councils (MBCs) worldwide to join and seize the opportunities available.

NZMBA and MBC, UAE discussed on deliverables and preparations for the World Expo 2021 which will be held in Dubai, UAE from October 2021- March 2022. Both parties also deliberated on plans to hold a hybrid UAE-NZ-Malaysia Business exhibition which will coincide with both the World Expo 2021 and the FieldDays Expo 2022/2023, the Southern Hemisphere’s largest agricultural event for cutting edge technology and innovation.

Source: Bernama

Joint initiative to assist investors expand into Australasia, Middle East and ASEAN


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Genetec Technology Bhd plans to expand its electric-vehicle (EV) battery production capacity, as well as to commission new factories in Europe and North America by the second half of 2021 (2H21).

CGS-CIMB Securities Sdn Bhd researchers Walter Aw and Mohd Shanaz Noor Azam stated in a recent report that Genetec plans to increase its annual battery production rate to 100 gigawatt per hour (GWh) by 2022 and three terawatt per hour (TWh) by 2030.

Genetec is aiming to reach 20 million EVs per year by 2030, but the amount would only account for one-third of the global EV demand.

The manufacturer stated that the new EV battery assembly lines will have a capacity to reach 20GWh annually per line.

“Based on this assumption, we think North American EV manufacturers may require up to five new lines by 2022 and potentially up to 150 lines to reach 3TWh by 2030,” CGS-CIMB report noted.

Global electric cars stock increased 43% year-on-year (YoY) to 10.2 million units last year, while the global car market sank 16% YoY due to the negative impact of the Covid-19 pandemic on the economy.

On the other hand, global electric car sales soared 51% YoY to 3.1 million units.

The International Energy Agency forecasts global electric car stock to reach up to 204 million units by 2030.

Genetec plans to invest in building a state-of-the-art manufacturing facility to meet the growing demand in EVs globally for its automation solutions.

Recently, it has managed to secure RM204.6 million worth of orders not only in EVs but also in battery, automotive, hard-disk drive and consumer electronics.

“Note that EV and battery orders made up 93% (RM189.4m) of its total secured orders (Feb 21 to date). Based on these new projects, its outstanding orderbook is 2.1 times of its total third-quarter revenue in the financial year 2021 (RM97 million). Genetec stated that the duration of these projects normally ranges from three to nine months (within 3Q22),” Aw and Mohd Shanaz wrote.

Regarding its financial performance, the manufacturing company’s revenue increased 20.9% YoY to RM97.1 million mainly supported by higher sales volume, but suffered a pre-tax loss of RM4.8 million in FY21.

The loss was caused by less profitable product mix, higher operating costs and increase in development costs for future projects, which is notwithstanding several one-off items.

“While Genetec was loss-making in FY21, it is confident the worst is over and expects stronger results going forward, backed by a strong orderbook and established relationships with global EV manufacturers. Genetec had a net cash position of RM27.5 million as at end-FY21,” the two analysts noted.

Genetec share price closed at RM8.50 yesterday, down 51 sen for the day.

Source: The Malaysian Reserve

Genetec to expand EV battery production to Europe, North America


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Yinson, via its green tech division, believes in Oyika’s affordable, app-based solution and battery swap infrastructure

Yinson Holdings Bhd has invested in Singapore’s electric vehicle (EV) battery start-up Oyika Pte Ltd to accelerate electric mobility (e-mobility) adoption in South-East Asia.

Yinson, via its green technology division, believes in Oyika’s affordable, app-based solution and battery swap infrastructure to drive EV adoption in the region.

The goal is in line with the group’s net-zero carbon ambitions.

“South-East Asia is the world’s largest motorbike market, with motorbikes constituting up to 85% of vehicle population in countries such as Indonesia and Vietnam, the two largest motorbike markets in the region.

“And less than 0.1% of them are electric. Each internal combustion engine motorbike on the road replaced by an e-motorbike saves about one tonne of CO2 equivalent per year.

“Thus, a significant reduction in carbon emissions can be made through the introduction of such EV solutions,” Yinson group executive VP (ventures and technology) Eirik Barclay said in a statement yesterday.

The company highlighted that Oyika works with local e-motorbike manufacturers to adopt their brand-agnostic technology for local use.

Oyika’s swappable batteries work with most e-motorbike brands and models in South-East Asia.

Subscribers to its pay-per-use, prepaid weekly or postpaid monthly plan can swap depleted batteries for fully charged ones at an Oyika swap station within a minute.

Barclay said Yinson aims to create a pathway for e-mobility to become an integrated way of life, transitioning the current fossil fuel-reliant system into a clean and sustainable one.

Yinson group chief strategy officer Daniel Bong said the investment, together with the group’s recent investment into autonomous, driverless solution company MooVita Pte Ltd, presents the first step of its roadmap towards building an integrated green logistics solution.

“Yinson is investing into green technologies to help mitigate global climate issues.

“We believe that being early movers in future-proof technologies and capitalising strategic partnerships with the public and private sectors are important to continually bring sustained value to our stakeholders,” he said.

Meanwhile, Oyika CEO Jinsi Lee said the company would leverage Yinson’s resources and global network to bring affordable EV solutions to developing countries.

“We look forward to rolling out Oyika’s subscription plans for EVs, to not only reduce the cost for riders, but more importantly, contribute towards mitigating climate change,” he said.

Oyika could further develop its technology and strengthen its market position in South-East Asia with Yinson’s support, network and experience in logistics and energy solutions.

Oyika’s core strength in technology development also synergises with Yinson’s green technology investment plans in Malaysia.

Oyika has rolled out its e-motorbikes in Cambodia and Indonesia, with plans to launch in Malaysia, Thailand and Vietnam.

Source: The Malaysian Reserve

Yinson invests in Singapore’s Oyika to drive EV adoption in SE Asia


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Techbond Group Bhd’s (TGB) new upstream polymerization plant in Vietnam has commenced production of base material, polyvinyl acetate (PVAc) polymer, the raw material used by TGB to manufacture industrial adhesives.

The production commencement at the Vietnam-Singapore Industrial Park II (VSIP II) will enable TGB to achieve cost savings through reduced transportation of raw materials from third-party suppliers.

It will also lower the company’s reliance on external suppliers and improve TGB’s profit margin from now on, coupled with the tax incentives given in Vietnam. 

The setup of TGB’s VSIP II factory complex entitles the company to a full tax exemption in Vietnam for the first two years upon having taxable income and a 50 per cent reduction of payable tax amounts in the subsequent four years.

TGB managing director Lee Seng Thye said that the capability to produce its own raw material provides the company with greater

control over the quality, properties, and characteristics of the polymer.

“Currently, we plan to meet our own polymer needs for existing industrial adhesives.

“Subsequently, the excess will be used to produce new types of adhesives to be sold to customers. Techbond’s new polymerization plant is part of our new 6,968 sq meters factory complex in VSIP II, which comprises new industrial adhesives manufacturing lines, warehouses, office, and quality control centre,” he said in a statement today.

He said TGB also took a big step toward becoming a pioneer in non-toxic palm oil-based industrial adhesives. Together with the Malaysian Palm Oil Board (MPOB), the company has successfully filed a patent application for the improved production process of palm-based polyol.

“We were able to significantly reduce the production process of the polyol, which is key in enabling commercialisation.

“Currently, we are undergoing testing with our customers and potential customers as well,” Lee said.

To recap, 72 per cent or RM28.7 million of the proceeds raised from TGB’s initial public offering (IPO) exercise in December 2018 has been earmarked for the VSIP II factory complex.

The new factory complex sits on a 30,000 sq meters land with a built-up size of 6,968 sq meters, and TGB existing factory in Vietnam sits on 9,037 sq meters land with 3,972 sq meters built up.

Source: NST

Techbond’s new upstream polymerisation plant in Vietnam commenced operation


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Luster Industries Bhd’s indirect unit Glovconcept Sdn Bhd has received a 50 per cent deposit payment of US$12.1 million (about RM50 million) from American Nitrile LLC for the initial six double former glove dipping lines.

This marks the start of Glovconcept’s contract to provide engineering, procurement, construction and commissioning (EPCC) services for the Ohio-based company’s glove manufacturing plants in the United States.

In a statement today, Luster said the deposit payment was received a month after Glovconcept, which is 60 per cent owned by Luster’s 56 per cent-owned subsidiary of Glovmaster Sdn Bhd, inked an agreement with American Nitrile to provide EPCC services as well as glove technology solutions for up to 12 glove production lines.

Luster deputy managing director Liang Wooi Gee said this was a positive development for the company as it showed the interest its clients had in escalating the start of the EPCC project.

“As indicated in our agreement, we will start to move forward with the orders for the machinery once we have received the first deposit payment. We also expect to see works for the initial six production lines to start and shipment to commence next year,” he said.

Liang said the deposit payment would help the group to mitigate the risk of its venture into North America.

“As this is our maiden foray into North America, the deposit payment is vital to safeguard some of the risks of our exposure. We are glad that we can move forward with the project now and are excited with the opportunities that it brings,” he added.

Source: Bernama

Luster’s unit to start glove manufacturing contract in US after receiving RM50m deposit


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Swiss-owned electronics manufacturing services (EMS) provider, ESCATEC Sdn Bhd has fully acquired  United Kingdom-based JJS Manufacturing in a private deal.

In a statement today, ESCATEC, a  Penang-headquartered company, said the  acquisition of JJS Manufacturing would add 1.4 hectares  of electro-mechanical production facilities to its assets, together with a headcount of 500 skilled employees in the United Kingdom (UK) and the Czech Republic.

It said the acquisition, coupled with the ongoing expansion of its Malaysian operations, is expected to rapidly propel ESCATEC’s annual revenues beyond the US$300 million (US$1=RM4.13) mark from over US$200 million currently.

Chief executive officer Patrick Macdonald said that the acquisition is a direct outcome of the company’s strategic plan to become a major player in the global EMS industry and further demonstrates its commitment to serve customers’ needs.

He said JJS Manufacturing, which reported a revenue of circa US$70 million in 2020, has an exceptionally strong industry reputation in supplying complex, highly configurable, low-to-medium volume electro-mechanical assemblies which demanded high levels of skill, precision, accuracy and consistency.

“It is an excellent t between ESCATEC and JJS Manufacturing and there is a lot of synergy in the abilities and experience of both companies, facilitating tremendous opportunities for cross-selling,” he said.

Meanwhile, JJS Manufacturing managing director Stephen Greaves said the company’s acquisition by ESCATEC would bring very strong financial backing for JJS Manufacturing and long term stability for the employees.

“This is in addition to providing access to its established expertise in high complexity electronics, printer circuit board assembly and box-build manufacturing and to its international business development network,” he added.

Established in 1974, ESCATEC has an overall production space of over 4.0 hectares, with production facilities in Penang and Johor Bahru, Malaysia as well as the ESCATEC Switzerland AG in Heerbrugg.

Source: Bernama

ESCATEC acquires UK’s JJS Manufacturing


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KUALA LUMPUR: Frontken Corp Bhd’s (FCB) acquisition of property in Kaohsiung, Taiwan will enable its subsidiary double the capacity to support the rising semiconductor demand as capacity from existing facility is insufficient to support the ever-increasing demand from customers.

JF Apex Securities Bhd in a recent note said in tandem with the significant growth of industry, the acquisition will allow FCB to position itself to cater and service the next few generations of cutting-edge chips.

This as there is an anticipated strong demand as the global semiconductor industry is set to continue its robust growth well into the next decade in relation to emerging technologies such as autonomous driving, artificial intelligence (AI) and 5G.

FCB is a provider of surface metamorphosis and mechanical engineering solutions.

The company serves a wide-range of heavy industries such as semiconductors and oil and gas (O&G).

In addition, the company also specialises in engineering services that include coating, machining and grinding, manufacturing and precision cleaning.

Being optimistic on the company’s outlook for O&G division, JF Apex said FCB has experienced higher order from various contracts for provision of manpower supply and also mechanical rotating equipment services with Petroliam Nasional Bhd (Petronas) in O&G division.

“We optimistic that the O&G division will perform better than financial year (FY) 2020 on the back of economic recovery and the higher crude oil price than last FY,” the research firm noted.

JF Apex also noted that FCB registered a net cash of RM310.5 million year-to-date (YTD), a 6.5 per cent higher growth from RM291.5 million in last quarter.

The company’s strong cash flow position forms a solid foundation to its future expansion.

Earnings-wise, FCB posted a record quarter result of RM103.5 million in revenue for the first quarter (Q1) FY21, up 21.9 per cent year-on-year (YoY) and 2.4 per cent quarter-on-quarter (QoQ) mainly attributable to the

significant growth of the semiconductor business.

Meanwhile, the company recorded a lower QoQ net profit of RM24.9 million, down by 1.4 per cent mainly due to surtax on undistributed earnings by Taiwan subsidiary.

“We understand that if excluding the surtax, the net profit for Q1 FY21 will be 9 per cent

higher QoQ,” the research firm said.

JF Apex is keeping its earnings and revenue forecast for FY21 and FY22 and maintains a Buy call with an unchanged target price of RM3.86.

Source: NST

Frontken Corp will be leading semiconductor player with Taiwan property purchase, says JF Apex


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KUALA LUMPUR: Sime Darby Bhd may ponder on setting up its technologically-advanced “motor city” in Petaling Jaya, Selangor in other countries, its senior executives said.

The group yesterday launched its RM570 million Sime Darby Motors City (SDMC) at Ara Damansara township here, touted as the largest automotive complex in Southeast Asia.

SDMC boasts a number of the largest flagship showrooms in Malaysia and Southeast Asia in six buildings.

It houses six flagship centres featuring brands represented by Sime Darby Motors in Malaysia.  They are BMW, Ford, Hyundai, Jaguar, Land Rover, MINI, Motorrad, Porsche and Volvo.

“We don’t specifically have plans to open up similar automotive complex in other countries we are operating. But if the opportunity arises, we may consider it. We have certain dealerships currently grouped together in certain markets,” Sime Darby Motors managing director Andrew Basham said at a press conference after the launch today.

Sime Darby has car and commercial vehicle distributorships and dealerships in countries such as Australia, New Zealand, China, Hong Kong, Macau, Singapore, Taiwan and Thailand.

Earlier, Basham said as one of the key players in the automotive industry, Sime Darby Motors had always been committed to providing world-class services to its customers.

“The launch of Sime Darby Motors City is a testament to this steadfast commitment,” he added.

Sime Darby Motors managing director (retail and distribution) Jeffrey Gan said SDMC aimed to be an exemplary centre for everything automotive.

“SDMC is truly a one-stop hub for customers shopping for their next vehicle,” he said.

The massive investment in SDMC reflects Sime Darby’s optimism in the local automotive sector.

Gan said Sime Darby Motors had seen good sales in the past one year.

“We are pretty positive about our sales outlook for the rest of the year,” he said, adding that the company expected its sales growth this year to be in line with the Malaysian Automotive Association’s (MAA) forecast of eight per cent expansion in the overall sales of new vehicles.

On the sales tax exemption for new vehicles which will end in June, Gan said Sime Darby Motors had submitted its request for an extension through the MAA.

SDMC is Malaysia’s first automotive facility that deploys Internet of Things (IoT) technologies.

At the heart of the facility’s digital infrastructure is its Vehicle Tracking Management system which utilises a camera-based parking guide and customisable signages to ensure a higher level of guidance, security and convenience for the customer.

The Volvo flagship store there features Southeast Asia’s first 3S showroom to be equipped with a Virtual Reality Studio.

Overall, SDMC spans across 8.6 acres with an overall built-up area of 1.3 million square feet over eight levels.

It also has an indoor facility capable of housing close to 100 vehicles under Sime Darby Motors’ pre-owned car business Sime Darby Auto Selection.

Integrated with the latest technologies to enrich the overall customer experience at every touchpoint, the facility boasts almost 200 service bays, 700 customer parking and electric vehicle charging bays and the capacity to display more than 180 vehicles.

Supporting the facility are about 60 Auto Bavaria technicians for BMW, MINI and Motorrad and over 110 certified technicians.

Source: NST

Sime Darby may set up “Sime Darby Motors City” in other countries


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Yinson Holdings Bhd’s indirect 80%-owned unit, Rising Sun Energy (K) Pte Ltd (RSEK), will develop a 190MW grid-connected solar photovoltaic (PV) power project at the Nokh Solar Park in Rajasthan, India, for NTPC Ltd worth RM1.5 billion.

The plant will be 30km away from Yinson’s existing 140MW Bhadla projects, which are currently operated by its 95%-owned subsidiary Rising Sun Energy Pte Ltd.

Following a letter of award (LoA), Yinson stated that RSEK will enter into a power purchase agreement (PPA) to supply 25 years of solar power-generated electricity to NTPC. The estimated aggregate value of the contract based on a fixed tariff of 2.25 Indian rupee/kWh is equivalent to 27.5 billion Indian rupee (RM1.5 billion), subject to the terms and conditions of the LoA and PPA to be executed, Yinson noted in a release yesterday.

Commercial operation of the plant is scheduled to commence in April 2022.

“Any extension of the PPA period beyond 25 years shall be through mutual agreement between NTPC and RSEK. The LoA represents a formal agreement and constitutes a binding document between the parties pending the execution of the PPA. “The PPA is expected to be executed after certain process formalities have been completed between the parties,” the company added. Risks affecting the contract include project execution risk such as schedule slippage and costs overrun.

It also includes operational execution risks such as being able to carry out timely maintenance of the plant to deliver the required level of power generation to NTPC. Yinson added that regulatory risks relate to compliance of all safety and environmental rules and regulations required by NTPC and relevant authorities.

Yinson’s shares closed up 0.38% at RM5.30 yesterday, giving it a market capitalisation of RM5.83 billion.

The group’s net profit in the third quarter ended Oct 31, 2020 (3Q21), surged 86.8% year-on-year to RM100.7 million contributed by engineering, procurement, construction, installation and commissioning (EPCIC) business activities and lower loss on foreign exchange of RM12.7 million.

Revenue for 3Q21 surged to RM2.3 billion from RM240.9 million posted a year ago on the back of contribution from EPCIC business activities relating to floating production storage and offloading (FPSO) Anna Nery and FPSO Abigail Joseph.

Source: The Malaysian Reserve

Yinson bags RM1.5b solar PV project in India


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KUALA LUMPUR (Feb 5): Printing inks and electrical discharge machining products manufacturer Toyo Ventures Holdings Bhd intends to raise up to RM46.22 million via a private placement to fund its Vietnam power plant project.

To recap, the US$3.23 billion (RM13.15 billion) Vietnam power plant project, also known as the Song Hau 2 thermal power plant, involves two electricity generation facilities of 1,060MW each and will be developed on 117.39ha of land.

This came after Toyo Ventures said its wholly-owned Toyo Ink Group Bhd and Toyo Ink’s unit Song Hau 2 Power Co Ltd executed the contract — which has a government guarantee — with the Vietnamese government at end-December 2020.

In a bourse filing, the group said it is planning to issue up to 16.05 million new shares or 10% of its share capital to third-party investors to be identified.

The issue price for the private placement will also be determined later. For illustration purposes, the indicative price of the placement shares is assumed at RM2.88 each, a discount of 9.94% to the group’s five-day volume-weighted average market price of RM3.20, the group said.

The exercise is expected to raise RM30.82 million under the minimum scenario and RM46.24 million under the maximum scenario, said the group.

It said under the maximum scenario, the bulk of the proceeds, or RM45.27 million, will be used for its Vietnam power plant project, while the remaining RM950,000 will be used to defray expenses associated with the exercise.

The board expects the private placement to be completed within six months from the date of Bursa Securities’ approval.

KAF Investment Bank Bhd is the adviser and the sole placement agent for the proposed private placement.

Toyo Ventures’ shares price closed down six sen or 2.17% to RM2.70, giving it a market capitalisation of RM289 million. There were 345,700 shares traded.

Prior to that, the stock was mostly hovering below RM1 from 2012 until Dec 29, 2020. Subsequently, its share price also hit a record high of RM4.31 on Jan 19, 2021 following the announcement on Vietnam power plant project.

Source: The Edge Markets

Toyo Ventures to raise up to RM46m for Vietnam power plant venture


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KUALA LUMPUR – Industrial automation solutions provider Greatech Technology Bhd via its unit Greatech Integration (USA) Inc has teamed up with US-based company Atlis Motor Vehicles (ATLIS) to assist ATLIS develop an electric vehicle battery pack assembly production line at its headquarters located in Arizona.

ATLIS is a start-up mobility technology company that is developing a fully electric vehicle platform, proprietary battery cells and packs, and the necessary charging infrastructure to recharge a 500-mile range battery in less than 15 minutes, according to a statement to Bursa Malaysia today.

Currently, ATLIS is nearing the advanced stage of its battery pack development that meets all necessary specifications and intends to move to small-scale production at its headquarters in Arizona.

Through this partnership, the Greatech Group will serve as ATLIS’ strategic partner for a comprehensive battery pack assembly production line and will supply all parts, equipment, and machinery required to form ATLIS’ limited-run prototype battery pack assembly line.

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Greatech said if the prototype lines meet ATLIS’ performance and quality expectations, the group will explore the development of high-volume lines designed to produce thousands of packs per month.

“The above strategic partnership arrangement with ATLIS commenced from Feb 1, 2021 (effective date) and shall be effective for an initial term of three years from the effective date (initial term),” said the group.

Contingent upon raising sufficient capital and funding to purchase the equipment, ATLIS agreed to engage Greatech as the sole equipment supplier for its prototype battery pack assembly line at ATLIS’ headquarters.

“The above strategic partnership arrangement will not have any material impact on the earnings per share and net assets of Greatech Group for the financial year ending Dec 31, 2021. None of the directors, major shareholders of Greatech and/or persons connected with them have any interest, direct or indirect, in the above collaboration arrangement,” Greatech added.

At the closing bell today, shares of Greatech settled eight sen or 1.42% higher at RM5.70, valuing the group at RM7.14 billion.

Source: The Edge Markets

Greatech partners US-based ATLIS to develop electric vehicle battery pack assembly production line in Arizona


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Aerodyne Group, an international DT3 (drone tech, data tech, and digital transformation) solutions provider, has inked a partnership agreement with Germany-based Quanto AG and Taku International LLC to expand Aerodyne’s pioneering drone solutions and services to potential customers in Austria, Switzerland, and Germany.

Quanto and Taku will offer Aerodyne’s smart drone solutions and innovative data analytics technologies to businesses across industries. This includes the DT3 company’s AI-powered, end-to-end cloud-based asset management solution, “vertikaliti”.

Aerodyne Group COO Rossi Jaafar said the strategic collaboration will benefit its German, Swiss and Austrian markets with optimum value proposition for drone services with cutting-edge intelligence and analytics.

“”I am very much looking forward to the partnership with Aerodyne. We observe a clear market trend for DT3 solutions, integrated in the backend systems of our customers,” said Quanto managing partner Jens Brakhage said.

Meanwhile, Taku managing member Karin Hollerbach said the collaboration enables the parties to bring drone data acquisition and integration solutions to its customers that no one of the three companies could do on their own.

Quanto is a leading IT and management consultancy in the DACH (comprises Germany, Austria and Switzerland) region, while Taku has expertise in the Internet of Things, artificial intelligence, and aviation-based sensor technologies for both manned and unmanned aircrafts, as well as related services.

Source: The Sun Daily

Aerodyne expands to Austria, Switzerland, Germany


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Supermax Corp Bhd has incorporated a new wholly-owned subsidiary, Maxter Healthcare Inc, in Delaware, US, to manufacture medical gloves and other personal protective equipment.

Incorporated last Friday, Maxter Healthcare’s intended principal activities include “the building of a national headquarters in the US”, according to Supermax’s stock exchange filing today.

“Maxter Healthcare Inc was incorporated with an issued and paid-up share capital of US$1. Subsequent to the incorporation, the issued and paid-up share capital will be increased to US$100 million (about RM404.5 million, based on exchange rate of US$1 = RM4.045 on Dec 21, 2020).

“The initial paid capital is part of the total allocation of US$550 million capital investment for Medical Glove Plant #18, when both Phase #1 & #2 are completed and commissioned,” it said, but did not elaborate.

The group said the proposed capital investment will be financed through a combination of internal funds and bank borrowings, the ratio of which will be decided later.

Shares in Supermax closed up five sen or 0.73% at RM6.89 today, giving the group a market value of RM18.75 billion. A total of 13.68 million shares were transacted.

Source: The Edge Markets   

Supermax incorporates new subsidiary in US


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