Ta Win, Terengganu state agency to develop ecocycle park at cost of RM2.4b
29 Jul 2020
Copper wire and rod maker Ta Win Holdings Bhd has teamed up with a Terengganu strategic investment agency to jointly develop an industrial park at a gross development cost of RM2.4 billion in Kemaman, Terengganu.
Ta Win said the proposed joint venture (JV) will enable its business operations to be further integrated into the supply chain of the non-ferrous metal industry as the industry players from upstream and downstream of the supply chain of that industry are pooled together to form an industrial ecosystem in the industrial park.
In a bourse filing today, Ta Win said it has entered into a JV agreement (JVA) with Perbadanan Memajukan Iktisad Negeri Terengganu (PMINT) for the proposed development likened to the Kitakyushu Eco-Town project in Fukuoka, Japan.
Measuring 500 acres, the Terengganu Ecocycle Park is expected to facilitate the industry innovation, delivery of significant impact in the usage of recycling raw materials and waste reduction, addressing the environmental conservation and climate change issues through responsible consumption and production, as well as collaborations and partnerships between the public and private sectors to promote sustainable economic growth, it added.
Under the JVA, a JV company called Ta Win Copper Ecocycle Sdn Bhd will be established to facilitate the proposed development. Ta Win will hold an 80% stake in Ta Win Copper Ecocycle, while PMINT will own the remaining 20% shares.
According to Ta Win, the Terengganu Ecocycle Park, comprising core technology zone, sub-core technology zone and supporting technology zone, will be developed in four phases.
As at July 28, 2020, Ta Win had shortlisted a number of the experts and consultants required for the studies to finalise the development plan of the industrial park.
Ta Win estimates that the full development and commissioning of the Terengganu Ecocycle Park will take over nine years.
In a separate statement, Ta Win group managing director Datuk Seri Ngu Tieng Ung said the Terengganu Ecocycle Park will be the first-of-its-kind in Southeast Asia. “We will be able to propel the sustainable long-term development of the non-ferrous metal industry. In fact, to lead the way forward and promote environmental conservation and sustainability in the non-ferrous metal industry supply chain, Ta Win will be relocating our existing headquarters and factories to the core technology zone of the park,” he added.
The group expects to fund the development of the Terengganu Ecocycle Park with its internal funds, bank borrowings and/or other funding alternatives which may include equity fundraising exercises to be undertaken by the company.
“The proposed JV is expected to contribute positively to the group’s future earnings arising from the undertaking of the development of the Terengganu Ecocycle Park. Any profit attributable would be realised in stages over the tenure of the development of the Terengganu Ecocycle Park based on the progress of the said development,” said Ta Win.
Ta Win shares ended the morning session down 3 sen or 11.32% to 23.5 sen today, with 53.61 million shares traded. Its market capitalisation stood at RM89.04 million.
Source: The Edge Markets