CAB Cakaran Corporation executive Chairman Chuah Ah Bee (left) and NCT president Tetsunori Ueda (right) posing after the signing of MOU yesterday.
KUCHING: Poultry producer CAB Cakaran Corporation Bhd (CAB Cakaran) has signed a Memorandum of Understanding (MoU) yesterday with Japan’s New Chemical Trading Co Ltd (NCT) and Seri Kedah Corporation Sdn Bhd (Seri Kedah) to establish a biomass power generation plant in Malaysia.
CAB Cakaran explained that the biomass power generation plant will produce fertiliser as a by-product through the incineration of chicken droppings.
Commenting on the MoU signing, CAB Cakaran’s managing director Christopher Chuah Hoon Phong said, “We would like to thank Northern Corridor Implementation Authority for facilitating this collaboration and selected CAB Cakaran as the working partner.
“This is a new and exciting business venture for CAB Cakaran where we are utilising our current waste to generate recurring income for the company going forward.
“This is our first step to venture downstream in the poultry farming business and we are excited with the growth prospects,” Chuah said in a press statement,
Under the MoU, two joint venture companies will be formed. Firstly, CAB Cakaran revealed that NCT and Seri Kedah will form a joint venture company (JV1) for the licensing of specific technology and know-how related to biomass power generation.
This JV company will be responsible for the maintenance servicing, processing facilities and equipment, as well as the marketing of the fertilizer.
The plant will be designed by Japan-based Nangoku Kousan Co. Ltd (Nangoku).
Additionally, a second joint venture company (JV2) will be incorporated by all three parties where the business will be focused on biomass power generation and the selling of the power produced. This company will hold 51 per cent equity interest, while the remainder 49 per cent stake will be held by Seri Kedah and JV1.
Seri Kedah will also provide support for the approval or contracts from Sustainable Energy Development Authority Malaysia (SEDA) and Tenaga Nasional Bhd (TNB) or other relevant authorities to run the biomass and solar photovoltaic power plant business.
NCT will provide the technical know-how related to the businesses.
CAB Cakaran says the MoU shall be valid for twelve months from the date of signing or until the execution of the valid joint venture agreement for the three parties.
To note, CAB Cakaran is a Main Market-listed company operating poultry farming and meat processing business in Malaysia.
The company revealed that currently it has an existing capacity of 3.6 million birds per month and has 10 breeder farms and 140 broiler farms in Peninsular Malaysia.