KUCHING: South Korean company, Hanil Electric Co Ltd, plans to invest in a manufacturing plant in Sarawak, with estimated total investment of US$50 million (RM210.7 million).
Hanil Electric’s principal activity is manufacturing of pumps and water circulation systems, household goods/electrical appliances and baby products.
Under a memorandum of understanding (MoU) entered into by Hanil Electric and Bina Puri Holdings Bhd (BPHB) on September 9, 2025, the parties agreed to explore avenues of cooperation whereby BPHB may be appointed as the engineering, procurement, construction and commissioning (EPCC) contractor for the proposed Sarawak manufacturing plant project.
The proposed appointment will be on such terms and conditions as may be mutually agreed in definitive agreements to be entered into between the parties, and nothing under this clause shall constitute a binding obligation on either party to proceed with the construction or award of the EPCC contract unless and until definitive agreements are executed, BPHB said in a filing with Bursa Mlaaysia.
“Hanil Electric shall, during the planning and development phase, keep BPHB informed of material developments relating to the project and afford BPHB a fair opportunity to participate in the EPCC tendering and negotiation process in priority to other third parties,” added the construction company.
Under the MoU, Hanil Electric appoints BPHB as its exclusive agent in Malaysia for the promotion, distribution, and market development of its products.
“BPHB shall, in good faith and subject to its commercial judgement, actively consider incorporating Hanil Electric’s technology and products in its existing and future projects, with the objective of enhancing efficiency, sustainability, and compliance with modern building standards.
“BPHB shall, at its discretion and subject to project feasibility, consider incorporating Hanil Electric’s products and solutions into its existing and future projects.
Hanil Electric shall provide comprehensive technical support to BPHB.”
BPHB said the parties shall consult in good faith on exploring expansion into other Southeast Asian markets.
The MoU shall remain valid for three years unless terminated earlier by either party by providing 90 days prior written notice. BPHB said the MoU is in line with the company’s intention to expand and sustain its operations via possible collaboration in the agreed areas.
“The execution of the MoU allows both parties to explore the potential business cooperation/ collaboration opportunities which include, but are not limited to, joint venture and/or business partnership to further expand their business operations.
“For the avoidance of doubt, in the event both parties have identified such terms of the business cooperation/ collaboration opportunities, definite/binding agreement(s) will be executed within the MoU period and the necessary announcement(s), if required, will be made accordingly,” said BPHB.
BPHB is currently implementing a private placement exercise, with the latest tranche involved the issuance of about 74 .55 million new shares at an issuance price of RM0.316 each.
These new shares were listed on Sept 8.
In November 2024, another tranche involving the issuance of about 131.14 million new shares at RM0.292 each was completed.
On December 22, 2023, BPHB announced the proposed issuance of up to 30 per cent of the company’s total no of shares (excluding treasury shares), and a proposed share consolidation of every five existing ordinary shares into one consolidated share.
The share consolidation exercise was completed in May 2024.
