Bina Puri inks MoU with Korea's Hanil for RM220mil Sarawak plant

KUALA LUMPUR: Bina Puri Holdings Bhd has signed a memorandum of understanding (MoU) with Korea’s Hanil Electric Group Co Ltd to serve as the engineering, procurement, construction and commissioning (EPCC) contractor for Hanil’s RM220 million manufacturing plant in Sarawak.

Under the MoU, Hanil will keep Bina Puri informed of material developments and grant the group priority ahead of other parties to participate in the EPCC tender and negotiation process.

Bina Puri will also be appointed as Hanil’s exclusive representative for the promotion, distribution and market development of Hanil’s products in Malaysia, while exploring expansion into other Southeast Asian markets.

In addition, the group will consider incorporating Hanil’s technology and products in its existing and future projects.

Executive director and group chief executive officer Marcus Goh Kee Lun said the deal marks one of Bina Puri’s first major developments since new management took over in April.

He added that Bina Puri received approval last month from the Corporate Debt Restructuring Committee, a committee under Bank Negara Malaysia, to mediate between the group and its lenders.

“This represents a major milestone in Bina Puri’s efforts to restructure its debt and restore itself to a solid financial position, effectively addressing its liabilities to ensure future sustainability.

“We are now preparing to take on new opportunities and actively tendering for projects across Sarawak and the rest of Malaysia.

“With these efforts, Bina Puri is increasingly on better footing. We are confident of restoring the group’s financial health and ultimately enhancing shareholder value,” he said in a statement.

Hanil Electric CEO Kang Jae Sung said the collaboration will enhance the group’s market presence in Malaysia while opening new opportunities across the region.

In April, Bina Puri announced a leadership transition at board level. Tan Sri Datuk Tee Hock Seng retired as deputy executive chairman, while Dr Tony Tan Cheng Kiat stepped down as founder director.

Kevin Chai Chan Tong now helms the group as executive chairman while retaining his managing director role.

At the midday break, Bina Puri’s share price was unchanged at 34 sen, giving the company a market capitalisation of RM277.73 million.

© New Straits Times Press (M) Bhd

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