Minetech Resources Bhd is one of the largest companies in the quarrying industry in Malaysia and it has established a wholly owned subsidiary known as Minetech Heavy Machineries Sdn Bhd.
This company will be responsible for building and growing the heavy equipment business.
Although Minetech Resources did not elaborate on the makers of the heavy equipment, there exists a Memorandum of Understanding with Chinese companies Sany International and Topmech.
The MoU signed in February 2014 was to allow the Chinese to familiarise themselves with the Malaysian company before deciding to further collaborate on the possibility of cross-investing, the companies had said in a joint statement.
Sany International is part of the Sany Group that has a diverse global business presence but its core activity is manufacturing heavy equipment and machinery. Topmech is involved in the crane business and is a dealer for certain Sany products.
Group executive director Chin Leong Choy said that Minetech would also purchase the equipment for its own use at a dealer’s price, thereby improving the group’s profit margins.
“We are eyeing on (sic) opportunities and potential that it presents, as it is also in line with our goal to grow the source of income from other streams,” Chin said in a press statement.
Aspirations for regional production hub
A report by Industry Review forecasted that the construction equipment market in Malaysia would be worth almost RM1.46 billion ($US470 million) by 2015.
Chin said Minetech is confident about venturing into the heavy machinery industry. He said the industry is highly supported by Malaysian Government initiatives such as the Third Industrial Master Plan (IMP3, 2006-2020), which aims to position Malaysia as the regional production hub and maintenance services centre for high technology and specialised machinery and equipment (M&E).
Chin Kim Sang and Chin Leong Choy, both directors of Minetech, are also the directors of Minetech Heavy Machineries.
Minetech Resources Berhad (MRB) operates an expanding network with nine quarries in Malaysia and overseas.
Source: Minetech Resources, The Sun Daily, The Malaysian Reserve, The Star