KUALA LUMPUR: Resintech Bhd signed a shareholders agreement with Sarawak-based SEDC Energy Sdn Bhd (SESB) and Johan Intan Sdn Bhd (JISB) to expand Resintech’s footprint in Sarawak’s industrial plastics sector.
The collaboration will involve establishing a joint venture to enhance the trading of industrial plastic products in the region.
Resintech’s collaboration with SEDC Energy also aligns with Sarawak’s ambitious green energy and sustainability goals.
This partnership complements SESB’s efforts to build a sustainable ecosystem, including projects such as producing sustainable aviation fuel (SAF) from algae cultivation in Sarawak.
This position positions the state at the forefront of renewable energy development in Southeast Asia.
Resintech managing director Datuk Dr Teh Kim Poo said this joint venture will boost the company’s trading capabilities and open doors to new opportunities in Sarawak’s rapidly growing industrial sector.
“By combining our industry expertise and SESB’s strategic position in Sarawak, we aim to drive value for both our stakeholders and the local economy,” he said.
The agreement was signed by Teh and SESB CEO Robert Hardin.
Resintech is a Bursa Malaysia main market listed company and a leading player in manufacturing diversified plastic pipes, water tanks and fittings.
SESB is a wholly owned subsidiary of the Sarawak Economic Development Corporation (SEDC), dedicated to advancing the state’s renewable energy initiatives.
JISB is a wholly owned subsidiary of Resintech.
The joint venture follows a memorandum of understanding (MoU) signed on June 15, 2023, between Resintech Plastics (Sarawak) Sdn Bhd and SESB.
This partnership leverages the combined expertise of both entities, positioning the new joint venture company, JISB, to capitalise on emerging opportunities in the industrial plastics market.
As part of the agreement, SESB will subscribe to 40,000 new ordinary shares in JISB, amounting to a 40% equity stake, with Resintech holding the remaining 60%.
Resintech believes that the joint venture with SESB will significantly strengthen the company’s financial performance by expanding market opportunities and securing a steady revenue stream from the Sarawak market.
The joint venture will initially focus on trading industrial plastics products, with the possibility of expanding into manufacturing based on future market demands.
Further, the joint venture also reflects Resintech’s ongoing commitment to environmental, social, and governance (ESG) principles, positioning the company as a leader in sustainable industrial practices while supporting Sarawak’s transition to cleaner energy solutions through initiatives like algae-based SAF production.
