Chief Minister Datuk Seri Mohd Shafie Apdal said the project will be a three-party joint venture, comprising Benta Wawasan Sdn Bhd as raw material provider, Biosea Corporation Sdn Bhd (funder and investor) and Lax Global Resources Sdn Bhd (technology provider).
He said the estimated total cost of investment for the project is RM5 billion for a 15-year period and it is targeted to produce 10 million tonnes of biodegradable plastics during the period.
"I do hope we can realise (this project) by next year, but of course, building the factory will take at least two or three years.
"This is the moment to ensure Malaysia moves forward, and in particular for Sabah," he said, adding that the factory will be located in Tawau.
Mohd Shafie was speaking to reporters after witnessing the signing of a memorandum of understanding (MoU) between the three companies at the Sabah State Administration Centre, here today.
Yayasan Sabah chairman Datuk Jamalul Kiram Mohd Zakaria signed on behalf of Benta Wawasan Sdn Bhd, a commercial company under Yayasan Sabah; Datuk Lim Sue Beng for Biosea Corporation Sdn Bhd; while Lax Global Resources Sdn Bhd was represented by its executive chairman, Datuk Seri Diraja Syed Razlan Syed Putra Jamalullail.
The project is expected to generate a revenue of RM42.73 billion during the period, averaging RM2.8 billion sales revenue per annum.
The estimated earnings before interest, tax, depreciation and amortization for the 15 year-period is RM11 billion, averaging RM733 million per annum.
Mohd Shafie said the project is aimed at supplying bio plastics resin to the manufacturers of biodegradable plastic bottles, biodegradable food containers and biodegradable plastic bags.
"When I visited some factories in Keningau, I saw the waste, they just throw like that and burn it," he added.