CMS raises stake in phosphate-project JV
KUCHING: Cahya Mata Sarawak Bhd ( CMSB) has announced that its wholly-owned subsidiary company, Samalaju Industries Sdn Bhd, subscribes 64,242,800 new ordinary shares in Malaysian Phosphate Additives ( Sarawak) Sdn Bhd ( MPAS) for a total cash consideration of RM64.2428 million.
MPAS was set up as a jointventure (JV) company to construct and operate an integrated phosphate complex in Samalaju Industrial Park.
Construction works on the plant are on-going – with Phase I, which comprises three integrated plants, is targeted for completion by end-2020.
It is learnt that the plant would produce yellow phosphorous, technical grade phosphoric acid and food-grade phosphoric acid – with annual production capacity of 48,000 tonnes, 75,000 tonnes and 60,000 tonnes, respectively.
According to CMS Group chief executive officer – corporate Dato Isaac Lugun, this is a strategic move to increase the group’s footprint in Sarawak Corridor of Renewable Energy (SCORE).
“The increase of our stake in MPAS is also in line with our growth strategy for strategic investments to drive the next wave of growth for the CMS Group. In particular, the aim of this growth strategy is for our traditional core businesses and strategic investments to equally contribute towards doubling the group’s earnings in the next five years,” he said in a press statement, issued in connection with CMS’ announcement to Bursa Malaysia yesterday.
Isaac also said MPAS’ first phase of production should commence by end-2020, adding that the project is expected to contribute significantly towards the group’s future earnings.