Eonmetall’s unit enters into arrangement with Felda Palm Industries

KUALA LUMPUR: Eonmetall Group Bhd’s wholly-owned subsidiary, Eonmetall Carotene Oil Sdn Bhd (ECOSB), had entered into a built, operate, own and transfer (BOOT) arrangement with Felda Palm Industries Sdn Bhd (FPISB).

In a filing with Bursa Malaysia yseterday, Eonmetall Group said the arrangement entailed granting and authorising ECOSB on an exclusive basis to design, engineer, finance, construct, commission, own, operate, transfer, maintain and manage palm fibre oil extraction plant at six selected mill locations (first phase mills).

ECOSB and FPISB would enter into six separate agreements to formalise the arrangement for the plants at the first phase mills.

“The plants will be constructed in the vicinity of the mills and FPISB will either lease/license or sublease/sublicense the land for the project to ECOSB,” said Eonmetall Group.

The group added that the concession period for the project would be 10 years commencing from the starting date of the plant’s commercial operations, unless terminated earlier in accordance with the terms and conditions of the BOOT agreement.

“ECOSB shall be responsible for all costs in relation to the plant and the land, including utilities payments, quit rent and assessments (on a prorated basis) and all other outgoing charged or imposed by relevant authorities and or FPISB, as applicable,” it added.

Eonmetall Group said the project might be implemented at FPISB’s four other mills upon the successful completion, commissioning, operation and commercialisation of all the mills under the first phase mills.

The project is expected to have a positive impact on net assets, gearings and earnings per share of Eonmetall for the financial year ending Dec 31, 2018. — Bernama