KUALA LUMPUR (July 24): A wholly-owned subsidiary of JAG Bhd has signed an agreement to provide total waste management services for a period of three years valued at approximately RM150 million.
In a filing to Bursa Malaysia on Monday (July 24), the company said its unit Jaring Metal Industries Sdn Bhd (JMI) signed the agreement with Infineon Technologies (Malaysia) Sdn Bhd.
JMI will manage all types of waste or by-products generated from Infineon’s production activities, including scheduled waste (such as electrical and electronic waste, process-related waste and maintenance-related waste), non-scheduled waste and critical scrap.
The agreement is for a period of three years commencing Aug 1, valued at approximately RM50 million per year.
“The execution of the agreement would result in the temporary increase in cash outflows of the group but it is still within an acceptable level of leverage,” said JAG, whose subsidiaries chiefly engage in the recycling, extraction and trading of metals, renewable energy, and real estate.
JMI, which was founded in 1997, is principally involved in recycling and manufacturing activities of extraction, production and refinery of ferrous, non-ferrous and precious metals via the recovery and reclamation of industrial and electrical waste, trading of ferrous and non-ferrous metals, and transportation of goods.
Meanwhile, Infineon's main activity is the manufacture and sale of semiconductors.
JAG shares closed at 32.5 sen apiece, an increase of two sen or 6.56%, valuing the group at RM202.76 million.