Techna-X, NHK Energy Construction inks agreement for smart city lighting projects
16 Jun 2021
Techna-X Bhd (TXB) has signed a sale and purchase agreement to acquire a 49 per cent stake in NHK Energy Construction Sdn Bhd (NHK) which will fast-track the former’s expansion into the green energy segment in smart city developments in Malaysia as well as in the Asia Pacific region.
“Both parties see great synergies and expansion opportunities leveraging on intelligent digital technologies and renewable
energy, especially with our Internet of Things (IoT) and ultracapacitor technology”, TXB executive chairman Tunku Naquiyuddin ibni Tuanku Ja’afar said in a statement today.
NHK is a green energy company that designs, develops, commissions, contracts and markets lighting for the growing renewable energy market.
The company currently holds a 15-year contract from Seberang Perai City Council (SPCC) to supply and install smart street LED lightings.
SPCC is Malaysia’s largest city council as it covers 747.8 sq km, with a population of 946,200.
TXB is the world’s only manufacturer of ruthenium-based ultracapacitor and a key technology player in the renewable energy storage, digital transformation and IoT space.
TXB, through its wholly-owned subsidiary, Touchpoint International Sdn Bhd, has been involved in other key smart city developments in Malaysia, including Putrajaya Smart City and the Mines Wellness City.
More cities in Malaysia are transitioning into smart cities, with local councils set out to meet the criteria of the Malaysia Smart City Framework.
According to one market research report, the global smart lighting market driven by smart cities is expected to grow rapidly at compounded annual growth rate (CAGR) of 20 per cent and expected to reach USD$22 billion by 2025.
NHK managing director Nik Hilmi Kadir said partnering with TXB is a great value proposition as it will enable the company to offer an integrated smart city solution to the market.
Nik Hilmi said the SPCC project award of RM30 million over 15 years for NHK is just the tip of the iceberg as more tenders are in place for various smart street light projects in Malaysia.
NHK is already in advanced discussions for over RM100 million worth of smart lighting projects, with four local councils preparing submissions for another two local councils.
TXB will benefit from this pipeline of smart lighting projects to complement its focus on local councils as part of its smart city initiatives.
It added that smart lighting to a growing list of verticals that will enable end-to-end digital ecosystems.
NHK will also benefit from the synergy with TXB’s intelligent digital ecosystem, data analytics, mobile data and IoT solutions.
With TXB’s financial support and expertise, NHK will increase its offerings to the local councils and scale up its rollout throughout the nation.