Friday 29 Mar 2024
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SHAH ALAM (Sept 29): Resintech Bhd, a polyvinyl chloride and polyethylene products maker, is venturing into the rubber plantation sector in Cambodia.

Managing director Datuk Teh Kim Poo said the venture, via a joint venture (JV) agreement signed two years ago, was a means to diversify Resintech's businesses.

Speaking to reporters after Resintech's annual general meeting here today, Teh said the company had signed a 70-year JV agreement with a Cambodia agriculture company to jointly develop 6,000 ha of agriculture land there.

Teh did not disclose the identity of the Cambodian firm. He however said the JV was on a 10:90 ratio between Resintech and the Cambodian firm respectively.

According to Teh, the JV had so far spent less than RM5 million for its maiden agriculture project.

"We have completed all the land clearing work and started to plant rubber trees beginning of this year," he said.

Teh expects the new business segment to start contributing to Resintech's financials by 2020.

"Normally, it takes five to six years for the trees to reach maturity. Hence, we may see the first contribution in the top and bottom lines in six years," he said.

Resintech shares have not been traded so far today. The stock last closed at 35 sen for a market capitalisation of RM48 million.

 

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