KNM Forms JV for Malay Petchem Projects
The scope of the jv, to be owned 51% by KNMPS and 49% by ADAP, will include engineering, procurement and construction services, the manufacture and supply of relevant equipment as well as building, owning and operating strategic projects. The latter is subject to feasibility and a separate project agreement.
Under the terms of the deal, KNM will be responsible for business development both with clients and the Sarawak government to secure projects, while ADAP will have responsibility for technical proposals. Both will be responsible for project financing in direction proportion to their respective shareholdings.
The agreement is valid for 12 months, but can be extended subject to both parties’ written approval.
Multinational group KNM has core businesses in project management, engineering, manufacturing and construction for the renewable energy, power, utilities, refining and petrochemical industries. It owns major brands Borsig, a German technology and equipment supplier, as well as FBM Hudson, an Italian designer and manufacturer of heat exchangers and high-pressure equipment.
The Malaysian group added that it is continually seeking expansion and diversification into strategically related businesses to build a sustainable future.
ADAP is primarily involved in asset portfolio management as well as investment and private equity matters.