Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 9): Asia Bioenergy Technologies Bhd's subsidiary Asiabio Petroleum Sdn Bhd has entered a tripartite memorandum of understanding (MoU) with Peri Formwork Malaysia Sdn Bhd and AT Engineering Solution Sdn Bhd — a subsidiary of AT Systematization Bhd — to research the scaffolding and formwork market in Malaysia.

In a statement today, Asia Bioenergy said the purpose of the tri-party MoU is to research and determine the market potential cost and profit benefits over the next five years in Malaysia of the scaffolding and formwork market, which is estimated to be worth RM400 million in the next two years for the oil and gas industry.

Going forward, Asiabio Petroleum would be responsible for identifying and securing the contract works requiring scaffolding and formworks, while Peri Formwork's role is to provide the product solutions and intellectual properties for the technology used.

Meanwhile, AT Engineering's role will be to locally manufacture the products to the design and specification provided by Peri Formwork.

Asiabio Petroleum is in the business of providing ancillary services in the oil and gas industry. The company is presently undertaking the design, maintenance and dismantling of scaffolding systems for the utilities, interconnecting, office site facilities for the Pengerang Integrated Petroleum Complex on an ongoing 30-month contract with an estimated value of RM220 million.

Peri Formwork is part of the Peri Group, one of the world's largest manufacturers of formwork and scaffolding, while AT Engineering specialises in the design and manufacturing of industrial automation and machinery.

Asia Bioenergy executive director Steve Tan said the company is proud to work with Peri Formwork to localise and create manufacturing opportunities in Malaysia.

"It makes synergistic sense for our investee company AT Systematization to partner with Asiabio Petroleum in this project," he said.

Asia Bionergy has a 17.1% stake in AT Systematization.

At the closing bell today, Asia Bioenergy shares were up 0.5 sen or 2.7% to 19 sen, and for a market capitalisation of RM85 million.

 

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