AT Systematization Bhd (ATS) plans to form a 50:50 joint venture with China-based MaoMing JiaCheng Industrial Co Ltd (JCheng) for the development of renewable energy in Malaysia.
ATS executive director Auniah Ali said the partnership might see the setting up of a plant in Klang, Selangor, for the production of new energy resources.
“The investment needed for the plant is US$20mil (RM63.3mil). We will be raising funds for the factory,” Auniah said at an agreement signing to mark the collaboration between ATS and JCheng.
Both parties intended to collaborate to explore fund-raising through a foreign listing exercise to raise capital for the factory. They said the foreign listing could be done in London and could potentially happen in six months.
“We are at the start of this venture and both parties are planning to list the joint-venture company, which will take time. Thereafter, the construction of the new facility is expected to take two to three years before production can commence,” the companies said in a joint statement.
JCheng, which supplies products like benzene, solvent oil, blending oil, light fuel oil and DM fuel, has an annual production of 600,000 tonnes. JCheng claims to be able to produce “enhanced” methanol that can replace petrol.
To a question, Auniah said the partnership had yet to decide on the size of the factory or its production capacity as it needed to gauge demand in the local market.
“We are currently in talks with KDN (Home Affairs Ministry) and Mida (Malaysian Industrial Development Authority),” she said.
The joint-venture company will`be formed after due diligence has been conducted by both parties.
“As JCheng’s proprietary knowledge and intellectual property to produce high-grade renewable energy is valuable, both parties need to sign this collaboration agreement for more details to be disclosed,” the statement said.
It said both parties had visited each other to discuss and gain a better understanding, with ATS having visited JCheng’s China production facility for preliminary fact finding.
“After the collaboration agreement is formalised, both parties can commence further due diligence,” it said.
Meanwhile, businessman Datuk Raymond Chan bought 10 million ATS shares from the open market yesterday. ATS shares closed at 21.5 sen yesterday, which was 1.5 sen lower than the previous day.
