Bina Puri signs pact with Korea’s Hanil, eyes job to build RM220m Sarawak plant

• Bina Puri will also be appointed as the exclusive representative for Hanil’s products in Malaysia, while exploring expansion into other Southeast Asian markets.

KUALA LUMPUR (Sept 9): Bina Puri Holdings Bhd (KL:BPURI) has signed a pact with Hanil Electric Group Co Ltd, paving the way for the contractor to build the South Korean firm’s planned factory in Sarawak.

Hanil, which manufactures water pumps and household appliances such as humidifiers and blenders, may invest RM220 million to develop a manufacturing plant in Sarawak as part of its expansion into Southeast Asia, Bina Puri said in a statement.

Under the terms of the memorandum of understanding, Bina Puri will be provided priority to participate in the engineering, procurement, construction and commissioning (EPCC) tender and negotiation process for the plant.

Bina Puri will also be appointed as the exclusive representative for Hanil’s products in Malaysia, while exploring expansion into other Southeast Asian markets.

“We are extremely honoured to be selected by Hanil to become their exclusive agent in Malaysia for their premium and quality products, besides potentially being the EPCC contractor for their future manufacturing plant,” said Bina Puri group chief executive officer Marcus Goh Kee Lun.

The pact is one of the first major developments for Bina Puri since a new management was put in place in April this year. Bina Puri, which recently returned to profitability after five years of net losses, is now in the midst of restructuring its debt.

Last month, Bank Negara Malaysia’s Corporate Debt Restructuring Committee agreed to Bina Puri's application for assistance to mediate between the company and its lenders.

“We are now preparing ourselves to take on new opportunities and actively tendering for projects across Sarawak and the rest of Malaysia,” said Goh. “With all these efforts, Bina Puri is increasingly on better footing.”

For Hanil, the collaboration with Bina Puri would strengthen its presence in Malaysia and open up new opportunities in the region, said its CEO Kang Jae Sung in the joint statement.

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