Resintech Berhad announced that it has entered into a shareholders agreement with SEDC Energy Sdn. Bhd. and Johan Intan Sdn. Bhd.in expanding the company's footprint in Sarawak's industrial plastics sector.
The parties will establish a joint venture unit aimed at enhancing the trading of industrial plastic products in the region. Resintech said the collaboration with SEDC Energy also aligns with Sarawak's ambitious goals in green energy and sustainability. This partnership complements SEDC Energy's efforts in building a sustainable ecosystem, which includes groundbreaking projects such as the production of Sustainable Aviation Fuel (SAF) from algae cultivation in Sarawak, positioning the state at the forefront of renewable energy development in Southeast Asia.
The Proposed Joint Venture follows a Memorandum of Understanding (MoU) signed on 15th June 2023 between Resintech Plastics (Sarawak) Sdn. Bhd. and SEDC Energy. This partnership leverages the combined expertise of both entities, positioning the new joint venture company, Johan Intan, to capitalise on emerging opportunities in the industrial plastics market.
As part of the agreement, SEDC Energy will subscribe to 40,000 new ordinary shares in Johan Intan, amounting to a 40% equity stake, with Resintech holding the remaining 60%.
Commenting on the joint venture, Dato' Dr. Teh Kim Poo, Managing Director of Resintech said he believes that the joint venture with SEDC Energy 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.
