KNM in JV for biomass projects

PETALING JAYA: KNM Process Systems Sdn Bhd, a unit of KNM Group Bhd, has entered into a joint venture (JV) with a South Korean company Hansol EME Co Ltd targeting renewable energy projects.

Hansol KNM Greentech Sdn Bhd will have a paid-up capital of RM1mil with KNM taking a 40% stake.

The remainder will be own by Hansol.

The JV aimed to undertake the engineering, procurement and construction of biomass waste projects, KNM said in a statement to Bursa Malaysia yesterday.

“Hansol shall act as the leader of the JV in the negotiation and successful implementation of any business opportunities and execute the overall management and coordination of the parties’ combined activities,” it said.

KNM said that it would subscribe for 400,000 new shares in the JV company at par value of RM1.00 each that will be settled in cash through internally-generated funds and or shareholders’ advances.

Hansol is primarily involved in engineering, procurement, construction and operation and maintenance of paper, incineration, waste-to-energy and wastewater treatment plants.

“The JV is subject to certain risks mainly in the renewable energy industry,” it said.