Sabah Electricity and SK Nexilis ink power supply MoU
17 Jul 2023
Sabah Electricity Sdn Bhd (SESB) has today signed a memorandum of understanding (MoU) with SK Nexilis Malaysia for the supply of electricity to SK Nexilis Copper Foil Manufacturing Plant based in the Kota Kinabalu Industrial Park (KKIP)
SESB chairman Datuk Seri Wilfred Madius Tangau said under the MoU, which is an electricity supply agreement (ESA), special tariff will be given to SK Nexilis with the aim of attracting foreign investments to Sabah.
“Through this MoU, SK Nexilis will be given special privilege as the largest industrial power user for SESB when this plant is fully operational.
“SK Nexilis will be a large power consumer user for SESB with an estimated consumption of 70MW and estimated sales of 45,360 MWh per month, thus chalking up an expected sales of RM122 million per year and a 10 per cent increase in sales for SESB,” he said at the event officiated by Sabah Minister of Industrial Development and Entrepreneurship Phoong Jin Zhe.
The supply of electricity to the SK Nexilis factory had already been commissioned in March 2023.
At the MoU ceremony, SESB was represented by chief executive officer Mohd Yaakob Jaafar and SK Nexilis Malaysia was represented by chief executive officer Shin Dong Hwan and witnessed by Madius and Phoong.
“This project has been identified as a high impact project providing two switch rooms and related works at the Kayu Madang main input substation (PMU) and stretched 132kV underground cable to accommodate the load demand from the SK Nexilis factory.
“Among the works that have been carried out by SESB is supplying, delivering, completing the installation, testing and commissioning of electrical equipment.
“To reduce the cost of this project, SESB has taken the initiative by identifying the nearest injection point which is to supply power through the Kayu Madang 132kV PMU to the SK Nexilis factory with a contract value of RM33.7 million.
He said that with the completion of this project, the ability and effectiveness of power distribution to SK Nexilis will be guaranteed and able to meet the needs of the manufacturing plant to operate more productively and further boosts Sabah’s economy.
Meanwhile, Phoong said the collaboration with SESB can indirectly help provide a positive impact to SK Nexilis’ investment in Sabah, especially in providing job opportunities for local residents and related parties.
“SK Nexilis’ copper foil manufacturing factory, expected to be completed by the end of next year, will provide job opportunities for Sabahans. Of the 400 job opportunities that will be created, 80 per cent will be filled by locals.
“The provision of job opportunities is in line with the state government’s policy which requires foreign companies to employ 80 per cent of the workforce among the local population of Sabah.
“With a total investment of RM4.2 billion, this the largest investment signed in Sabah so far. The copper foil factory was built by the SK Nexilis company from South Korea on 100 acres in KKIP,” he said.