NJRP will invest Rm30mil to expand industrial roller plant in Rawang

RAWANG: NJRP (M) Sdn Bhd, which has set up an industrial roller and rubber equipment manufacturing plant, will invest Rm30mil in the first phase of its expansion here.

The company is a joint venture (JV) between China-based Nanjing Jinsanli Rubber and Plastic Co Ltd (NJRP China), a producer of rubber and polyurethane products for heavy industry, and Acestahl Holdings Sdn Bhd, which fabricates equipment for industries such as steel and oil and gas.

Acestahl chief executive officer K.L. Yap said the JV was created to meet the demand for high-grade rubber and polyurethane products, which are mostly imported at present and thus more expensive.

He said the tie-up would enable the transfer of technology from its foreign partner, the No. 1 provider of polyurethane rubber parts and rollers in China by market share.

For NJRP China, he said the JV helped achieve its aim of expanding its market reach in the region.

Acestahl has a 48% equity in NJRP Malaysia, with the balance 52% held by NJRP China.

The JV company has received its first order worth RM300,000 from Bahru Stainless, a stainless steel production plant jointly established by Spain’s Acerinox SA and Japan’s Nisshin Steel.

Yap said the company was in discussions but had not yet signed contracts with other companies.

Its 46,000-sq-ft facility in Rawang, Selangor, had a sales target of Rm5mil in its first year of operation, he added.

On its future plans, Yap said the plant would ramp up capacity to serve markets in South-east Asia such as Indonesia, Thailand, Vietnam and the Philippines.

It was also looking into the possibility of setting up a similar plant on a JV basis in India, he said.