KUALA LUMPUR: JAG Bhd's unit JAG Renewable Energy Sdn Bhd has entered into a sale and purchase agreement with Kobe Steel Ltd to acquire a freehold land in Hicom Industrial Estate, Shah Alam, for RM36.89 million.
In a statement, the group said the acquisition was part of its proposed expansion of its total waste management business, which requires a total capital investment of about RM60 million, including land and equipment.
JAG said the expansion would involve establishing new production lines and increasing storage capacity to strengthen its processing capabilities and operational flexibility.
The total capital requirement of RM60 million includes the cost of the land and equipment.
The group expects the expansion to position it to capture growing resource recovery opportunities as Malaysia's digital infrastructure, renewable energy and electrification sectors expand.
JAG said investments in data centres, solar energy infrastructure and electric vehicles were expected to generate increasing volumes of recyclable materials at the end of their useful lives.
The expansion would enhance the group's ability to recover valuable materials from these waste streams through its existing recycling and resource recovery capabilities.
JAG executive director Datuk Ng Meow Giak said the acquisition is not merely an addition to the group's industrial asset base, but a strategic investment to support the next stage of its total waste management business expansion.
As Malaysia continues investing in digital infrastructure, renewable energy and electrification, new waste streams will gradually emerge as these assets reach the end of their lifecycle, he said.
"End-of-life data centre hardware, solar panels and electric vehicle (EV) batteries will require specialised recycling, material recovery and environmentally responsible waste management solutions.
"By expanding our processing capacity and storage capabilities today, we are positioning JAG to capture these future opportunities while continuing to support our customers with reliable, compliant and environmentally responsible waste management solutions," he said.
Waste management remains a highly regulated industry with significant technical, operational and compliance barriers to entry, and that building the infrastructure and recovery capabilities, as well as regulatory readiness required to support future waste streams takes time.
"This expansion allows us to prepare ahead of demand, strengthen our ability to recover higher-value materials from increasingly complex waste streams and reinforce JAG's long-term role in supporting Malaysia's circular economy," he noted.
The acquisition will be financed through a combination of internally generated funds for the 10 per cent deposit and bank borrowings for the remaining purchase consideration.
Moving ahead, the proposed acquisition is expected to strengthen JAG's long-term growth by providing additional industrial space to support future production lines, storage capacity and operational requirements.
Beyond supporting its existing industrial waste recycling activities, the expansion is expected to position the group to capture emerging end-of-life recycling opportunities arising from data centre hardware, solar panels and EV batteries as these infrastructure assets mature over time.
© New Straits Times Press (M) Bhd