Friday, March 18, 2011

Scientex to invest RM22.5m to venture into solar energy sector

KUALA LUMPUR: Scientex Bhd is investing RM22.5 million for a 50% stake in a joint venture (JV) to manufacture and distribute encapsulating sheets for solar cells.

In a statement Friday, March 18, Scientex said it had signed a shareholder agreement with Japanese firm MCTI to as part of its plants to foray into the solar energy sector.

It said Tokyo-based MCTI, a wholly-owned subsidiary of Mitsui Chemicals, Inc. was one of the top three producers of ethylene-vinyl acetate (EVA) encapsulating materials for solar films in the world, producing EVA sheets for solar cells at its existing factory in Nagoya.

Scientex said the JV company plans to build a state-of-the-art manufacturing plant for EVA sheets for solar cells to be located in Bukit Rambai Industrial Estate, Malacca.

Commercial production is expected to begin in 2012, it said.

The JV will have an issued and paid-up capital of the JV company is RM45 million comprising 45 million ordinary shares of RM1 each.

Scientex said it would finance its investment of RM22.5 million in the JV company via internally-generated funds.

MCTI would hold the remaining 50% in the JV.

Scientex managing director Lim Peng Jin said the JV represented a strategic opportunity for the company to actively participate in the exponential growth in global demand for renewable energy, specifically solar films.

'Scientex has achieved a proven track record in becoming a highly-efficient and competitive manufacturer of volume products.

'Coupled with the cutting-edge technologies of MCTI, the JV company would thus combine the core competencies of both parties to produce global-standard EVA sheets for solar cells at affordable costs to meet burgeoning demand worldwide,' he said.

MCTI chief executive officer Tetsuo Masuda said the JV with Scientex was in line with the company's initiatives to enhance its competitive position in the global market in the long term.

Masuda said the company's aim was to make renewable energy a viable alternative to meet the world's energy requirements.

'MCTI is pleased to strengthen our collaboration with Scientex through this JV. MCI, our parent company, first collaborated with them for the manufacturing and distribution of urethane prepolymer products in 2002.

They have developed a strong and mutually-beneficial partnership since then, and we are confident that this JV would be another success story for each party,' he said Masuda.

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