KUALA LUMPUR (July 15): Cable manufacturer Master Tec Group Bhd (KL:MTEC) has signed a memorandum of understanding (MOU) with Kuching-based Senari Synergy Sdn Bhd (SSSB) to jointly assess the feasibility of establishing a cable manufacturing facility in Sarawak.

The MOU, inked Tuesday (July 15), outlines a one-year collaboration during which both parties will conduct a joint feasibility study for the proposed venture, according to Master Tec’s filing with Bursa Malaysia.

SSSB's core operations are in the oil, gas, petrochemicals and palm oil refinery sectors, with its facilities located at the Senari Synergy Industrial Complex in Senari, Kuching.

Under the agreement, SSSB will take the lead in engaging with local authorities and identifying suitable project sites for the proposed facility. Master Tec, on its part, will provide technical input and manufacturing expertise, drawing on its extensive experience in the cable industry. Both companies are also committed to undertaking joint marketing and stakeholder engagement initiatives as part of the comprehensive study.

Master Tec currently operates three manufacturing plants, all in Melaka, with a combined annual production capacity of up to 9,500 tonnes of wires and cables — comprising 4,000 tonnes of copper-cored wires and cables, and 5,500 tonnes of aluminium-cored wires and cables.

The group said this initiative in Sarawak aligns with its strategic objective to expand its presence in Borneo and pursue strategic partnerships to support the group's long-term growth.

At Tuesday’s close, Master Tec shares were unchanged at RM1.06, valuing the company at a market capitalisation of RM1.08 billion. Year to date, the stock has fallen 13.1%.