Serba Dinamik in joint venture with Tanzanian company

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PETALING JAYA: Serba Dinamik Holdings Bhd’s unit will be partnering with Tanzania-based Junaco (T) Ltd (JTL) to set up a 45-metric tonne per day Chlorine Skid Mounted Chlor-Alkali plant in Msufini Area, Mlandizi Ward, in Tanzania.

The agreement will create an opportunity for Serba Dinamik International Ltd (SDIL) to be awarded the engineering, procurement, commissioning and construction (EPCC) of the plant valued at RM295.26 million (US$69.8 million). It will also be made the operations and management operator for a period of 10 years with an option for another five years.

JTL is a leading supplier of water-related solutions supplying its products and services, mainly water meters, water pumps, water treatment chemicals, pipes and fittings to water utilities, manufacturers, re-sellers and non-profit organisations. The company and its subsidiaries operate in more than 10 countries namely, Tanzania, South Africa, Mauritius, Netherlands, Malawi, Zambia, Uganda, Kenya, Democratic Republic of Congo and Dubai (UAE).

Serba Dinamik said in a Bursa Malaysia filing it had on Oct 6 entered into a joint venture agreement(JVA) with JTL, in which Serba Dinamik will be holding a 25% interest, while the remaining held by JTL.

In relation to that, the two parties also intend to set up a special purpose vehicle known as Msufini LLC, to be incorporated in a free trade zone in the United Arab Emirates, where the plant will be parked.

Under the agreement, SDIL is required to obtain all financing needed for the construction of the plant, while JTL is to provide the land as well as offtake contracts from reputable companies to support the application of financing for the project.

“Through this JVA, we will be able to expand our business into a new region that is Tanzania, which will ultimately expand our brand recognition into Africa for the first time. We are proud to be able to participate in the EPCC works, which is valued at RM295.26 million,” said Serba Dinamik’s managing director Datuk Dr Ir Mohd Abdul Karim Abdullah in a separate statement.

The JV partners will be splitting the profits in proportion to their respective shareholdings.


Read the original story on: TheSunDaily.My