PETALING JAYA: Chemical supplier Samchem Holdings Bhd’s wholly owned subsidiary, SC Terminals Sdn Bhd (SCTSB), has entered into an agreement with Idemitsu Chemicals (M) Sdn Bhd (ICMSB) for the proposed acquisition of the right to use part of a Johor leasehold land parcel for RM21.08mil.
In a filing with Bursa Malaysia, the group noted the leasehold for the land that measures about 64.21 ha will be a 60-year one and expire on May 29, 2051.
According to the group, the land will be used for chemical storage and processing of resin and synthetic latex-related products.
Additionally, Samchem said that the proposal is expected to be funded entirely via internally generated funds or bank borrowings.
Samchem said concurrently, its subsidiary had entered into a supplemental agreement with ICMSB in relation to a cost sharing and service arrangement to govern the upkeep, maintenance, repair, and replacement of the basic infrastructure and common facilities.
Furthermore, the supplemental agreement also included a jetty agreement, whereby SCTSB has proposed to utilise the jetty for its business operations and intends to undertake certain upgrades to its facilities, subject to obtaining the necessary regulatory approvals.
Meanwhile, Samchem said the proposal will provide them with a space that is suitable for the development of a bulk liquid storage terminal.
In doing so, Samchem noted that the group will be able to expand its storage capacity for its internal usage as well as for rentals to its customers.