KUALA LUMPUR: TSA Group Bhd
’s indirect wholly-owned subsidiary, TSA Quarry Sdn Bhd (TSAQ), has entered into a joint operation and sole distribution agreement with Asas Bumi Rezeki Sdn Bhd (ABR) to operate and distribute granite products from a 32.73-hectare quarry site in Pantai Remis, Perak.
In a filing with Bursa Malaysia, TSA said Kuari Asas Hasrat Sdn Bhd (KAHSB), the mining leaseholder, had granted ABR exclusive operating rights to the quarry site effective April 18, 2025. Subject to the agreement’s terms, ABR appointed TSAQ as joint operator and sole distributor of the products.
Under the agreement, ABR will be responsible for securing all necessary approvals from the authorities, ensuring extraction meets TSAQ’s sales requirements, granting access to the jetty and stockpile land, and maintaining product standards.
TSAQ, in turn, will handle customer contracts, provide equipment, manage quarry operations, ensure product quality, deliver project management services, and support ABR in product sales and distribution.
The agreement is valid for five years from the commencement date, upon fulfilment of all conditions precedent. TSAQ will have the option to extend the term.
TSA said the estimated initial capital commitment by TSAQ for the collaboration is up to RM20mil over five years. It will be funded through a mix of internal funds and borrowings.
This amount includes a RM5mil one-off payment to ABR, the cost of acquiring plant and equipment for quarry operations, and working capital needs.
TSA said the collaboration supports its strategy to strengthen the group’s business resilience and long-term shareholder value by creating new income streams.
“By entering the granite quarrying market through the collaboration, TSA Group aims to diversify its revenue and reduce reliance on its current core business, manufacturing of welded stainless steel pipes and trading in stainless steel and other metal products.
“Despite this move, the Board intends to continue operating the metal-related business as usual,” it said.
