Genetec inks MoU for ammonia plant in India

PETALING JAYA: Genetec Technology Bhd is looking for a potential new business opportunity to provide its system automation solutions and services in the setting of an ammonia and urea manufacturing plant in Andhra Pradesh, India.
Genetec told Bursa Malaysia that it had entered into a memorandum of understanding (MoU) with the Malay Chamber of Commerce Malaysia (MCCM), China Rainbow International Investment Co Ltd (CRIIC) and India's VBC Fertilizers and Chemicals Ltd to collaborate on the development of an ammonia and urea manufacturing plant via a consortium to be formed between the parties.
The plant will have a capacity of 2.5 million metric ton per annum on a land allocated by the state government of Andhra Pradesh in Andhra Pradesh, India.
CRIIC, which is principally engaged in project contracting and international investment and trade, will nominate the engineering, procurement, construction and commissioning (EPCC) contractor, to provide the bank guarantee and/or performance bond and to raise the necessary funding for up to 30% of total cost of the proposed project.
VBC is involved in engineering, procuring, construction and commissioning of urea production plant projects in India. Its role is to assist the consortium in India on approvals, permits, licenses, land and other matters.
MCCM is responsible to assist the consortium in coordinating with Malaysian government including ministries and agencies, while Genetec is to facilitate CRIIC's participation in the proposed project.
The equity allocation among Genetec, CRIIC and VBC in relation to equity structure of the consortium is to be negotiated and mutually agreed and to be set out in definitive agreement(s).
The consortium will jointly carry out a feasibility study to ascertain the technical feasibility and economic viability of the proposed project.
Genetec's share price gained 2.3% to close at RM1.31 on some 778,500 shares done.