KUALA LUMPUR: Minetech Resources Bhd has inked an original equipment manufacturing (OEM) agreement with Cretpaver Asia Sdn Bhd (CASB) to manufacture and trade bituminous products, with an estimated contract value of RM10 million per annum.
The agreement was entered through Minetech Asphalt Man International Sdn Bhd (Mami), an 85%-owned subsidiary of Minetech. Mami is engaged in the manufacturing and trading of bituminous products.
Meanwhile, CASB is involved in supplying materials for road construction, road line marking and road safety furniture.
Minetech Resources told Bursa Malaysia in a filing that Mami will be responsible for the manufacturing of the bituminous products while CASB will be responsible for exclusively distributing the bituminous products and shall utilise its expertise to promote and sell the manufactured bituminous products to the public in Malaysia.
Minetech Resources said the agreement shall have an initial term of one year and shall be automatically extended for another one year upon the expiry of the term.
Minetech Resources’ share price closed 0.5 sen or 10% lower at 4.5 sen on Tuesday (Nov 15), giving it a market capitalisation of RM57 million.
Source : The Edge Markets