Boilermech inks deal with two partners to boost future earnings

  • Stocks
  • Wednesday, 07 Oct 2015

Strategic partnership: (from left) Leong, Plantation Industry and Commodities Minister Datuk Amar Douglas Uggah Embas CSIRO director Nick Pagett at the MoU signing. — Bernama

PETALING JAYA: Biomass boiler maker BOILERMECH HOLDINGS BHD has signed a 15-year agreement and a memorandum of understanding (MoU) with two separate partners that could impact its future earnings positively.

First, the company has signed an agreement with Commonwealth Scientific and Industrial Research Organisations (CSIRO) for the commercialisation of CSIRO’s patented technology that will enhance the oil extraction efficiency.

With the agreement, Boilermech will have the sole and exclusive rights to commercialise the technology for all mills in Malaysia, Australia, Brazil, Canada, Cote d’Ivoire, China, Columbia, Ecuador, Europe, Indonesia, India, Japan, South Korea, Mexico, Papua New Guinea, Philippines, Russia, Thailand, Ukraine, and the United States.

Then licence, aimed at increasing the overall efficiency of oil palm extraction from oil palm fruit, will last until 2030.

In a statement yesterday, the company said the adoption of the CSIRO-developed technology by palm oil mills was expected to boost its future earnings and profit margin.

Boilermech added that the ultrasound technology would provide an opportunity for it to make further inroads into the biomass renewable energy sector and in turn, broaden its scope of business activities and enhance profitability.

Its managing director Leong Yew Cheong said: “This is a relatively new technology in the market that holds much potential due to its ability to recover the trapped oil during the settling process.

“We hope to incorporate this technology in existing and all future palm oil mills in Malaysia and other palm producing countries.”

Boilermech has also signed an MoU with Jasa Aman Engineering Sdn Bhd (JAE) that will pave way for it to be JAE’s independent exclusive agent to market sell, install and service the Prime brand steam turbine generators.

The generators are used in industrial power generation projects in Asia.

Both parties are working on a 10-year agreement under this partnership.

“As the official agent for the Prime steam turbine generators, Boilermech can now offer a one-stop solution for electrical power generation island, which will drive higher growth and additional profits for the group,” it said.

JAE business development manager Vincent Ng said: “This alliance specifically targets that need by having Boilermech package its steam boiler system with our Prime steam turbine.

“At the end of the day, customers are not only buying a boiler and a steam turbine; they are buying a solution for power and heat.”


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