KUALA LUMPUR (June 15): Plastic pipes and fittings maker Resintech Bhd has inked a Memorandum of Understanding (MOU) with SEDC Energy Sdn Bhd to establish a joint venture company to expand its business in Sarawak and get itself into the renewable energy sector.

The MOU was inked via its wholly-owned Resintech Plastics (Sarawak) Sdn Bhd. SEDC Energy is a private limited company located in Kuching, Sarawak and is a unit of Sarawak's economic development arm, the Sarawak Economic Development Corp. It is responsible for kickstarting the “new renewable energy” ecosystem in Sarawak.

The partnership will enable the parties to leverage each other's strengths and resources to operate in the plastic industry, Resintech's bourse filing read.

Under the MOU that will be in effect for one year, their eventual joint venture collaboration is subject to the parties “obtaining the necessary internal board approvals, legal and regulatory compliance, and any other obligations required by their respective companies”.

Shares of Resintech closed one sen or 1.85% higher at 55 sen on Thursday, giving it a market value of RM106.62 million.