TEX CYCLE AND ECONAS RESOURCES FORGE GROUNDBREAKING COLLABORATION AGREEMENT

Enhancing Eco-Efficiency in Waste Management Through Collaboration Agreement

KUALA LUMPUR, 9 JULY 2024 – Tex Cycle Technology (M) Berhad (“Tex Cycle” or the “Group”), an established waste management and recycling solutions provider, is pleased to announce the indirect wholly-owned subsidiary, Tex Cycle (P2) Sdn. Bhd. (“Tex Cycle P2”) formed a collaboration with Econas Resource to Energy Sdn. Bhd. (“ER2E”). This collaboration marks a significant advancement in combining expertise to maximise business opportunities in scheduled waste management, where it is expected to have a positive impact on Tex Cycle’s revenue streams and complements the Group’s existing business model, while enhancing the ability to provide comprehensive services in this sectorCaptions From Left to Right: Ms. Geraldine Hill Siaw Wei, 许筱苇女士，Group Chief Financial Officer of Tex Cycle.

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ER2E is known for its advanced secured landfill and upcoming incineration facilities and a comprehensive waste management complex in Pengerang, which specialises in the collection, recovery, and disposal of scheduled waste. By collaborating with ER2E, Tex Cycle will be able to utilise their end-of-life waste disposal facilities namely the secured landfill and incineration plant to extend the range of waste management services to customers, enhancing the Group’s ability to manage and process diverse waste types more efficiently. This on hindsight would create a remarkable synergy especially with Tex Cycle being one of the market leaders in terms of its scheduled waste recovery and recycling expertise over the past 4 decades.

Under the collaboration, Tex Cycle will utilise its established market presence to support ER2E in promoting and expanding its waste management operations. Specifically, Tex Cycle will make its best effort to secure up to 5,000 tons per month of scheduled waste management works for ER2E, ensuring first priority for disposal and processing at ER2E’ facilities. Additionally, Tex Cycle will provide technical support and act as a third-party transporter, enhancing ER2E's operational efficiency, where applicable.

Conversely, ER2E will engage Tex Cycle for similar volumes in waste recycling and recovery projects, granting them priority to undertake and manage these projects. ER2E will also extend strategic and operational support to Tex Cycle, reinforcing the collaboration's goal to optimise each party’s core competencies in waste management.

Mr. Gary Dass A/L Anthony Francis, Group Chief Executive Officer of Tex Cycle commented, "We are pleased about our collaboration with ER2E, as it represents a pivotal advancement in our mission to enhance environmental sustainability across Malaysia. This partnership will enable us to leverage ER2E’s exceptional capabilities in waste management solutions, enhancing our service delivery and efficiency. Together, we aim to set new industry standards for resource recovery, and environmental management, driving innovation and excellence in our operations. We believe this collaboration will not only enhance our market presence but also significantly contribute to a more sustainable future with our core waste management processes as well as boost our revenue significantly."

Dato’ Mohd Shafiee bin Mohd Sanip, Executive Chairman of ER2E added, “Our collaboration with Tex Cycle is a remarkable milestone that leverages our combined strengths in waste management to innovate and enhance environmental practices across Malaysia. By joining forces, we aim to accelerate the implementation of cutting-edge waste treatment technologies, efficiencies and solutions, significantly advancing our shared vision for a cleaner, more sustainable future. We are confident that this partnership will produce substantial benefits for both our operations and the communities we serve.”

This collaboration is expected to significantly boost both companies' capabilities, enabling them to lead the charge in sustainable waste management and support the evolving needs of industries and communities with superior solutions.