SEDC Energy-Resintech JV to strengthen industrial plastics trading

KUALA LUMPUR (Sept 17): Resintech Berhad (Resintech), a Main Market listed company and a leading player in the manufacturing of diversified plastic pipes, water tanks and fittings, has entered into a Shareholders Agreement with SEDC Energy Sdn Bhd (SEDC Energy) and Johan Intan Sdn Bhd (Johan Intan), a wholly owned subsidiary of Resintech.

SEDC Energy is a wholly-owned subsidiary of the Sarawak Economic Development Corporation (SEDC), which is dedicated to driving the state’s renewable energy initiatives.

The SH Agreement was signed by Datuk Teh Leng Kang, Executive Director of Resintech Berhad and Robert Hardin, Chief Executive Officer of SEDC Energy Sdn Bhd.

The collaboration marks a significant step towards expanding Resintech’s footprint in Sarawak’s industrial plastics sector through the establishment of a joint venture aimed at enhancing the trading of industrial plastic products in the region.

Resintech’s 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 June 15, 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 per cent equity stake, with Resintech holding the remaining 60 per cent.

Commenting on the joint venture, Dato’ Dr. Teh Kim Poo, Managing Director of Resintech, stated, “We are excited to join forces with SEDC Energy to establish a stronger presence in Sarawak.

“This joint venture will boost Resintech’s trading capabilities and open doors to new opportunities in Sarawak’s rapidly growing industrial sector.

“By combining our industry expertise and SEDC Energy’s strategic position in Sarawak, we aim to drive value for both our stakeholders and the local economy.”

Resintech 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.

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.