Genetec to join consortium for ammonia plant project in India

Industrial equipment manufacturer Genetec Technology Bhd is partnering with several parties to collaborate on the development of an ammonia and urea manufacturing plant in India.

In a filing with Bursa Malaysia this evening, Genetec said it has signed a Memorandum of Understanding (MoU) with the Malay Chamber of Commerce Malaysia (MCCM), China Rainbow International Investment Co Ltd (CRIIC) and India-based VBC Fertilisers & Chemicals Ltd (VBC) for the proposed development.

The MoU, said Genetec, provides the opportunity for it to provide its system automation solutions and services within the project scope.

Save for MCCM, the three companies will also form a consortium to facilitate the project development, said Genetec.

“The equity allocation among Genetec, CRIIC and VBC in relation to equity structure of the consortium is to be negotiated and mutually agreed and to be set out in definitive agreements,” it said.

Under the MoU, Genetec is tasked to facilitate CRIIC’s participation in the project. CRIIC will in turn nominate the engineering, procurement, construction and commissioning (EPCC) contractor, and to provide funding totalling 30% of the project development cost.

On the other hand, MCCM will assist the consortium coordinating with the Malaysian government relating to the project. Similarly, VBC is to assist the consortium on approvals, permits, licences, land and other matters in the project site in Andhra Pradesh, India.

Shares of Genetec rose 3 sen or 2.34% to RM1.31, giving the group a market capitalisation of RM46.49 million.

Source: The Edge Markets