KUALA LUMPUR: Prinsiptek Corp Bhd has roped in AA Strategic Marketing Inc Sdn Bhd and TTSJ Trading Sdn Bhd to build an oil palm mill and refinery in Sabah for RM2.126 billion.
Prinsiptek’s wholly-owned Tanah Perangsang Sdn Bhd has signed a joint venture agreement with the other two companies for the construction.
The company said the joint venture would strengthen its core competencies in the construction industry as well as income stream to its business in the long run.
“The proposed development and construction shall be completed within five years from the date of all necessary approval of the relevant authorities is obtained,” the company said in a filing to Bursa Malaysia.
The financial commitment of the joint venture shall be funded from internally generated funds and bank borrowings, it added.
Prinsiptek said AA Strategic shall responsible to plan, organise, delegate and control every phase of development and construction including all the relevant authorities approval.
“TTSJ on the other hand will be responsible to apply with the state government for approval to construct oil palm mill, oil palm refinery, bulking storage tank, port and jetty at Sipitang, Sabah.
“It will also issue standby letter of credit being collateral towards the bank facilities granted,” the company said.