KUALA LUMPUR: Gulf International Investment Group Holdings Sdn Bhd, headed by local tycoon Tan Sri Syed Mokhtar Al-Bukhary and UAE-based business leader Mohamed Ali Rashed Alabbar, has entered into a joint-venture (JV) agreement with Aluminium Corp of China to develop a US$1.6bil (RM5bil) aluminium smelting plant in Sarawak.
The JV company, Smelter Asia Sdn Bhd, will develop, own and operate the private aluminium smelting plant with an annual capacity of 370,000 tonnes.
The smelter will be located in Samalaju Industrial Park, 60km from Bintulu and some 180km from the Bakun hydroelectric dam. The park has been earmarked by the state government for heavy industries under the Sarawak Corridor of Renewable Energy master plan.
Smelter Asia also executed the principal terms of the power purchase agreement (PPA) with Syarikat Sesco Bhd, the wholly-owned subsidiary of Sarawak Energy Bhd, for over 600MW of power supply to the proposed aluminium smelting plant. Smelter Asia and Sesco will jointly conclude the PPA by mid-year.
Prime Minister Datuk Seri Najib Tun Razak and Chinese Premier Wen Jiabao (second from left) witness the exchange of document between Smelter Asia chairman Mohamed Ali Rashed Alabbar (right) and Aluminium Corp of China deputy GM Zhang Chengzhong
“The global demand for aluminium is projected to grow by an average 4% over the next five years, with Asia driving the demand. Our strategic collaboration will bring the best in class technology to create a modern aluminium plant that will contribute to the socio-economic growth of Sarawak state,” Syed Mokhtar said in a media statement yesterday.
Meanwhile, Alabbar said the plant would not only benefit the country but also support the Asean region's development thrust by providing aluminium, which is critical in driving the massive infrastructure projects that are being planned.
“This signing of joint-venture agreement marks a significant milestone in the course of project development. I believe Smelter Asia would become an indispensable driving force that dramatically stimulates Sarawak's economic growth,” Aluminium Corp deputy general manager Zhang Chengzhong said.
The agreement follows the execution of the heads of agreement for the JV in February.
Source: http://biz.thestar.com.my/news/story.asp?file=/2011/4/29/business/8576388&sec=business
Source: http://biz.thestar.com.my/news/story.asp?file=/2011/4/29/business/8576388&sec=business
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