Monday 17 Jun 2024
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KUALA LUMPUR (May 16): Kejuruteraan Asastera Bhd (KAB) is partnering with PT CNEC Engineering Indonesia, a subsidiary of China National Nuclear Corp, and Transcend Global Ltd (TGL) to develop potential sustainable energy solutions (SES) projects regionally.

In a filing with Bursa Malaysia on Tuesday (May 16), the electrical and mechanical engineering services provider said its wholly owned subsidiary KAB Energy Holdings Sdn Bhd (Kabeh) has entered into a memorandum of understanding (MOU) with PT CNEC and TGL to establish the joint venture.

Through the partnership, Kabeh and PT CNEC will collaborate to identify and develop various proposed projects, while TGL will assist in conducting financial feasibility studies for shortlisted projects and facilitate the merger and acquisition (M&A) of projects by the special purpose vehicle (SPV).

“Under the MOU, all parties will leverage their combined expertise to provide businesses regionally with engineering solutions for sustainable, green, and clean energy,” KAB group managing director Datuk Lai Keng Onn said.

Assuming the critical role in driving the MOU, he said KAB will propose projects for a joint review with PT CNEC to assess their feasibility. KAB will also contribute its technical expertise, advice, and extensive experience during the feasibility studies.

"The proposed projects span across Asia including a 100-megawatt (MW) solar system in Thailand, the development of windfarm, desalination and water treatment plant in the Philippines, development of captive power plants in Malaysia, and initiatives such as irradiation plant, machinery and equipment leasing, mini-liquefied natural gas (LNG) terminal, and trading of materials and equipment in Indonesia,” he said.

He added, “These extensive lists of proposed projects demonstrate our commitment in pursuing larger and more ambitious sustainable energy projects which shall further drive the growth of our SES segment.”

The project is also in line with the group's overall business strategy in expanding its suite of solutions for the SES segment to meet its customers’ ever-growing needs.

At the time of writing, KAB rose half a sen or 1.67% to 30 sen, valuing the group at RM542.54 million.

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