KUALA LUMPUR (Oct 20): Asia Bioenergy Technologies Bhd (ABT) is partnering a local private company to set up an integrated facility to provide blasting, painting (B&P), as well as steel fabrication services.

Its unit, AsiaBio Petroleum Sdn Bhd, has inked a collaboration agreement with ACME Industrial Services Sdn Bhd to effect the tie up, Asia Bio said in a statement.

The collaboration's key objective is to set up the facility to target multinational companies contracted to construct the Petronas Refinery and Petrochemical Integrated Development or Rapid, within the Pengerang Integrated Petroleum Complex (PIPC), the statement said.

Under the deal, ACME will contribute a five-acre industrial lot which it has secured within the PIPC in Pengerang, Johor.

The formalisation of the collaboration is of the most opportune timing, as B&P works is most needed in this current stage of construction, Asia Bio added.

“Recent enquiries from package holders requesting for quotations from service providers have put the value for certain B&P packages to be around RM120 million for a single work package,” said ABP head of operations David Chuah.

“The proximity of the site, which is less than 1km away from the access gate to Rapid, makes this location extremely suitable, as turn-around time and transportation cost can be greatly minimized,” Chuah added.

“We look forward to working together with ACME, which has invaluable experience in this industry. 

"Together, our ultimate aim is to explore opportunities to develop and support the proposed facilities that are being constructed within the PIPC to be part of the future ongoing maintenance stream of work that will continue well after the construction phase is completed,” said ABT executive director Steve Tan.

“This will provide the proposed venture with a future stream of income,” Tan added.

The profitability of the venture will be split equally between the parties, Asia Bio said.

Shares in Asia Bio, which primarily operates as a technology incubator in the bioenergy sector, slid 0.05 sen lower or 2.63% to close at 18.5 sen today. The stock has gained 37% in the past one year.