SUBANG: Satang Jaya Holdings Bhd subsidiary Satang-ICS Global Sdn Bhd expects annual sales of RM50mil from its new pellet cleaning equipment, of which RM30mil would come from overseas.
Satang-ICS has been representing Australia-based ICS Global in the manufacture and marketing of the industrial pipe-cleaning devices in Asia since last year.
“We started making the product in July last year and have already shipped them to China, Japan, Hong Kong, Taiwan, South Korea, and Vietnam,” Satang-ICS chief executive officer P. C. Tan said after a demonstration of the product yesterday.
The company has appointed agents in all its export markets to distribute the product as well as to provide cleaning services.
Tan said that for the past 10 months, Satang-ICS had achieved sales of RM7mil from the pellet cleaning equipment, mainly from overseas.
The company has appointed GPA Holdings Bhd's 70%-owned subsidiary Hasrat Mestika Sdn Bhd as its local distributor and to undertake the servicing. Satang Jaya holds the remaining 30% equity in Hasrat.
“The alliance with Hasrat is aimed at tapping GPA Holdings' wide network and reach,” Tan said.
Hasrat chairman Datuk Azhar Muhammad said the company targeted to provide services to palm oil mills, factories, water-pipe network, military equipment as well as the oil and gas industry.
“Our first target is the palm oil industry,” he said.
Azhar said Hasrat had signed an accord with Sawit Kinabalu Bhd and expected to clinch a contract to maintain the latter's refineries and mills.