BUSINESS

BTM INKS MOU FOR WOOD PELLET JV PLANT IN TERENGGANU

08/04/2019 06:42 PM

KUALA LUMPUR, April 8 (Bernama) -- BTM Resources Bhd intends to set up a wood pellet manufacturing plant in Terengganu in a joint venture with Korea Electric Power Corporation (Kepco) and two other parties in order to expand its pellet business and diversify its income stream.

The timber company said wholly-owned subsidiary BTM Biomass Products Sdn Bhd had inked a memorandum of understanding (MoU) with the potential partners on April 1 to develop a comprehensive cooperative framework for the project.

The other parties are Kepco's unit Korea South-East Power Co Ltd that operates five power plants, South Korea-based gas manufacturer and gaseous fuel distributor Mokpo City Gas Co Ltd, and Selangor-based wood pellet maker MC Bio Sdn Bhd.

In a filing with Bursa Malaysia today, BTM Resources said all three parties would make investment and develop the project as shareholders.

Under the MoU, BTM Resources’ role is procure raw materials for the project while MC Bio will produce the product with specifications that meet KOEN’s requirements. KOEN's role is to off-take the product from the project and Mokpo will deliver the product to KOEN while guaranteeing the agreed quantity and quality.

The MoU has a duration of 24 months and the term may be extended for another six months by mutual agreement among the parties.

-- BERNAMA


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