Sumatec Eyes 4 Energy-related Areas

The Edge Daily, 28 June 2004

SUMATEC Resources Bhd plans to diversify into four related areas of the energy sector in the medium term - marine transportation and logistics, hazardous waste management, oil storage and terminal link, and renewable energy.

"The company is looking for long-term projects in (these) four areas which will bring in a constant stream of income as contract-based work is not very reliable," its managing director James Chan said.

Speaking to reporters after SUMATEC's AGM in Kuala Lumpur on June 28, he said SUMATEC hoped to capitalize on its expertise and long-term presence in the energy sector in venturing into the four areas.

He said due to the high capital expenditure involved in the four energy-related areas, the expansion would be done in stages and involve a combination of borrowings and right issue.

Chan said SUMATEC was actively tendering for projects abroad, especially in Chad and Sudan, as proven oil reserves in Malaysia was diminishing.

He said the company had RM527 million worth of local and overseas contracts, which could last until 2006.

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