Monday, November 15, 2010

ETI Tech Corp Bhd (ETI) (0118) is in talks with the Perak state government to jointly set up an energy storage plant

ETI Tech Corp Bhd (ETI) (0118) is in talks with the Perak state government to jointly set up an energy storage plant at a designated green technology park in Meru, near Ipoh.

Its executive director Y.K. Khor said if the plan materialises, the company, which provides renewable energy storage solutions, expects to spend some RM100 million on the plant and related equipment.

"Each year, we plough in tens of millions into research and development and buying of equipment for the development of our business.

"If we build a factory by next year, we need to spend up to RM100 million," he told Business Times in an interview in Kuala Lumpur.

Khor said the project will also depend on the utilisation and volume capacity of its existing facility in the Kulim High Technology Park, Kedah.

"When our volume increases beyond what we can take versus our current volume right now, we may have to start thinking of moving or expanding this factory.

"We foresee this movement of factory, pending further detailed discussion (with Perak government) but may start (building the factory) as early as next year," he said.

Khor said ETI is looking at buying between 2ha and 4ha of land for the factory.

"We still have 2.8ha of land in Kulim, which is ready for expansion," he said.

ETI, listed on Bursa Malaysia's Main Market, also has a research and development centre in Penang.

The company sees the potential of establishing a new facility in Perak in view of the state government's aspiration to harness green energy and technology.

"The Perak government is very keen on driving green energy campaign in the state. By mid-2011, the state government may ban the use of various forms of lead acid batteries within its agencies. This augurs well with our business operations and activities," Khor said.

He said the green park in Meru will attract investors from various countries to manufacture green technology products in the area.

On its financial performance, Khor said ETI expects to improve sales and profit for the year ending August 31 2011, especially with more projects coming in.

"Currently, our company is raking in sales of around RM80 million to RM90 million a year and with the kind of projects coming in, it could easily have a quantum leap impact on our revenue.

"Eventually, our revenue will continue to come mainly from our mobile charging devices such as for mobile phones and notebooks. But solar application will eventually become one of our major streams of income in future," he said.

Khor said ETI was working closely with various government departments and agencies to implement the solar application for its lithium battery projects in remote and rural areas in the country.

The company also signed a business development agreement with Green Electric Sdn Bhd and Erapolitan Sdn Bhd to jointly bid for contracts to supply power via the grid system from the Ministry of Education and Ministry of Rural and Regional Development.

ETI is also looking at expanding its business to Southeast Asian countries, China and India.

"Our mission is to become a regional supplier of renewable energy storage system. There are still sizeable areas within these countries that have yet to be connected with their national electricity grid," Khor said.

courtesy from: Business Time

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