SIG Gases Bhd to Provide Gases to Samalaju Industrial Park, Malaysia
KUCHING: SIG Gases Bhd (SIGGas) is working out the details of its proposed industrial gas production plant and refilling plant projects to supply liquid products and compressed gases to industries in Samalaju Industrial Park, Bintulu.
Executive director Stanley Lau said the details, including the plants’ development costs and production capacity, were expected to be finalized soon.
This follows the signing of a joint-venture agreement between wholly-owned subsidiary Southern Industrial Gas Sdn Bhd (SIGSB) and Iwatani Industrial Gas Pte Ltd, a unit of Iwatani Corp of Japan as strategic business partners last Saturday.
Under the agreement, a joint-venture company called Iwatani-SIG Industrial Gases Sdn Bhd would be set up. Iwatani and SIGSB will hold 60% and 40% equity interest respectively in the JV company.
SIGGas’ core business is in manufacturing, refilling and distribution of various types of industrial gas. Iwatani’s principal activities are gas manufacturing and distribution of gaseous fuels through mains.
Iwatani-SIG will produce and supply liquid products, including oxygen, nitrogen, argon and carbon dioxide, hydrogen and gases via pipelines to Sarawak Corridor of Renewable Energy (SCORE) customers in Samalaju Industrial Park.
Iwatani-SIG will purchase compressed gases from SIGSB and supply to customers in Samalaju.
The JV company’s authorised share capital would be increased to RM25mil and the final paid-up share capital to RM11.2mil.
Lau told StarBiz that the JV company was expected to ink supply contracts with SCORE customers next month.
Major investors which are in various stages of constructing their manufacturing facilities in Samalaju Industrial Park are Press Metal Bhd, Asia Mineral Ltd, OM Materials (Sarawak) Sdn Bhd and Tokuyama Corp.
Press Metal is constructing a second aluminium smelter while OM and Asia Mineral invest in ferro alloy manganese smelters.Tokuyama is building a polycrystalline silicon plant.
SIGGas had earlier announced plans to build an acetylene plant and refilling facilities, such as oxygen, nitrogen, argon and carbon dioxide, in Samalaju Industrial Park.
The company said total investment in the projects, including land acquisition and production and refilling facilities, was estimated at RM13.25mil.
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