KUALA LUMPUR: Sanichi Technology Bhd, a mould maker for the automotive sector, has made its first venture into the energy sector by securing a two-year contract to supply three million tonnes of coal a year to China.
Johor-based Sanichi also formed a joint venture agreement with coal trader FiRC Trade (Malaysia) Sdn Bhd to sell steam coal in China.
Sanichi managing director Datuk Dr Jacky Pang said this venture will be the company's new business division and will bring it to a higher level in the future.
"Prospects are good because there is an overdemand situation for coal globally," he told reporters here at the company's KL office yesterday.
The steam coal will be supplied by Indonesia's coal miner CV Permata Al Zahra, which had signed an order supply commitment with Sanichi.
Sanichi has committed to undertake business development activities to market and distribute the coal supplied by Permata together with FiRC.
Sanichi and FiRC have agreed to a 50:50 profit-sharing ratio from the trading business.
"We will start supplying coal in January next year and it will impact positively to the company's future earnings and growth," said Pang.
However, he said the company is not in a position to make a clear assessment of the potential impact on Sanichi's earnings per share, net assets per share and gearing for the financial year ending June 30 2012.
Pang said China uses 2.5 billion tonnes of steam coal a year, of which 35 per cent Indonesia supplies followed by countries like South Africa, Australia and Mongolia.
Sanichi, which is listed on the ACE market, will fund the activities through internally-generated funds.
Pang said it will approach Tenaga Nasional to buy its coal and may also own mine in Indonesia.
Johor-based Sanichi also formed a joint venture agreement with coal trader FiRC Trade (Malaysia) Sdn Bhd to sell steam coal in China.
Sanichi managing director Datuk Dr Jacky Pang said this venture will be the company's new business division and will bring it to a higher level in the future.
"Prospects are good because there is an overdemand situation for coal globally," he told reporters here at the company's KL office yesterday.
The steam coal will be supplied by Indonesia's coal miner CV Permata Al Zahra, which had signed an order supply commitment with Sanichi.
Sanichi has committed to undertake business development activities to market and distribute the coal supplied by Permata together with FiRC.
Sanichi and FiRC have agreed to a 50:50 profit-sharing ratio from the trading business.
"We will start supplying coal in January next year and it will impact positively to the company's future earnings and growth," said Pang.
However, he said the company is not in a position to make a clear assessment of the potential impact on Sanichi's earnings per share, net assets per share and gearing for the financial year ending June 30 2012.
Pang said China uses 2.5 billion tonnes of steam coal a year, of which 35 per cent Indonesia supplies followed by countries like South Africa, Australia and Mongolia.
Sanichi, which is listed on the ACE market, will fund the activities through internally-generated funds.
Pang said it will approach Tenaga Nasional to buy its coal and may also own mine in Indonesia.
