Tex Cycle in JV to invest RM100m to build Sabah waste management facility - MIDA | Malaysian Investment Development Authority
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Tex Cycle in JV to invest RM100m to build Sabah waste management facility

Tex Cycle in JV to invest RM100m to build Sabah waste management facility

29 Apr 2024

Tex Cycle Technology (M) Bhd said on Monday it has partnered with Evolusi Bersatu Sdn Bhd to invest RM100 million in Sabah’s first integrated scheduled waste management facility.

The facility is expected to start construction in the second half of this year and will be fully operational by the fourth quarter of 2025, Tex Cycle said in a statement.

The project is designed to complement existing scheduled waste management providers, it added.

When contacted, Tex Cycle’s management told The Edge that Tex Cycle will hold a 51% stake in the joint venture (JV), while Evolusi Bersatu, an oil and gas services firm, will own the remaining 49%.

“It also aligns with Sabah’s broader efforts in creating over 150 job opportunities and conserving our natural resources,” said Muhamad Tolling, managing director of the JV company Tex Evolusi Waste Management.

Sabah Chief Minister Datuk Seri Hajiji Noor said this facility represents a significant step in the journey towards a cleaner and more sustainable Sabah, and he believes this will attract more foreign investors who share environmental, social, and governance value.

As opposed to sending wastes to Peninsular Malaysia for processing, the facility prioritises a locally centred waste treatment process, aiming to reduce costs and emissions while ensuring legal compliance and environmental responsibility.

“Additionally, the facility is tailored to serve various industries and offers comprehensive waste management solutions, especially in the oil and gas sector,” the company said.

Datuk Keh Chuan Seng is the largest shareholder in Tex Cycle with a 26.436% stake, held via his private vehicle Frazel Group Sdn Bhd. He was appointed as the group’s executive chairman in May last year after emerging as its substantial shareholder.

Tex Cycle’s executive director Lee Hai Peng also surfaced as the group’s substantial shareholder in May last year, with a 5.129% equity interest.

Their blocks of shares were acquired from Tex Cycle’s previous major shareholder Can Cycle Sdn Bhd, which disposed of its entire 31.565% stake, or 80 million shares.

Klang-based Can Cycle is a private vehicle jointly owned by low-profile businessman Ho Siew Choong and his brothers Ho Siew Cheong and Ho Siew Weng, as well as Periasamy Sinakalai, better known as S Perry.

The 53-year-old Keh is also the executive chairman of stainless steel maker K Seng Seng Corp Bhd. His private entity Frazel Group owns 22.98% of the company, being the second-largest shareholder after Singaporean Cheong Lai Sin (27.43%).

Keh began his career in real estate development in Japan. During his tenure there, from 1991 to 2005, he was involved in local and international property development, as well as the hospitality, agriculture, asset management and financial industries.

Meanwhile, 58-year-old Lee is a non-independent, non-executive director of Solarvest Holdings Bhd and an executive director of K Seng Seng Corp. He joined Chin Hin Group Bhd in 2008 as group accountant, before being promoted to group financial controller the following year. He was made executive director in 2015, a position he held until December 2022. 

On Monday, Tex Cycle’s share price closed up four sen or 3.6% higher at RM1.14, valuing the waste management and recycling company at RM292 million.

Year to date, the stock has gained 65% from 69 sen on Jan 2.

Source: The Edge Malaysia