KUALA LUMPUR (Dec 4): Handal Resources Bhd has partnered with China-based Harbin Jingwei Advanced Compsite Material and Engineering Corp to jointly develop innovations and advanced material applications for the oil and gas industry in Malaysia and the region.

Harbin Jingwei, which is involved in the business of advanced high performance composite material, is a unit of Shanghai EB Pipeline Engineering Ltd. 

Under the collaboration agreement which was inked on Nov 28, Handal will jointly develop and promote solutions/products and perform project management for secured contracts, a Bursa Malaysia filing from the company today showed.

Shanghai EB will provide technical know-how on advanced material engineeering.

"This project is under China Policy of “One Belt, One Road”. Its technology is under independent research and development and this hi-tech composite material is an advanced technology of strategic importance in the oil and gas development, as well as other industries, both at home and abroad," the filing read.

“We are proud that we are able to contribute in bringing in leading technology into Malaysian waters. We believe that the application of advanced composite materials would greatly benefit the development of oil and gas, as well as other industries, both locally and abroad," said Handal chief operating officer Zahari Hamzah in a separate statement.

"This agreement also showcases the flexibility of our business model, enabling us to move deeper into the value chain and sharpen our expertise beyond our core activity of providing offshore crane services. We aim to use this opportunity as a stepping stone in achieving greater heights, and through advanced and cost-efficient technologies, become a total solutions provider to our clients,” Zahari added.

Handal itself is primarily engaged in providing integrated crane services, supply, fabrication, and servicing of industrial equipment and tank systems that cater to offshore O&G facilities.

It is also involved in the design, fabrication, certification and operation of drilling rigs, both for land and offshore ones.

At 3pm, Handal shares were not traded. The stock was last traded at 22 sen, giving the company a market capitalisation of RM35.11 million.