Fitters to expand green solutions division (9318)

KUALA LUMPUR: Fitters Diversified Bhd aims to grow its green solutions division into a core business, with a target revenue contribution of 50% by 2014.

Managing director Datuk Richard Wong said the company expected to grow its renewable energy business by 5% this year and 20% to 30% in 2013.

Fitters' financial year 2011 (FY11) closed with a revenue of RM446.59mil compared with RM189.75mil a year before. Net profit stood at RM21.98mil compared with RM13.16mil previously.

The growth will be achieved through its wholly-owned subsidiary Future NRG Sdn Bhd's venture into renewable, alternative and waste-to-energy projects such palm oil green mills, biomass plants and biogas capture plants. The company is also looking into medical waste management.

Yesterday, Fitters entered into a shareholders' agreement with Johore Tenggara Oil Palm Bhd (JTOP) to carry out the construction and operation of a dry long fibre plant at Sungai Kachur Oil Palm Estate, an oil palm estate owned by Tradewinds Plantation Bhd.

JTOP merged with 14 of Tradewinds' plantation subsidiaries in May 2004 and subsequently transferred its listing status to Tradewinds.

The green mill is an addition to the oil mill to convert waste such as empty fruit bunches and palm oil mill effluents into dry long fibre, which can used to make mattresses and car seats.

“This is our recurring income strategy,” Wong said.

He said the green mills would provide dry long fibre end-products which Future NRG has the rights to off-take for sale to third-party buyers. It was reported that Future NRG already has a ready buyer in China.

For this purpose, a joint-venture company, LPT Biomass Sdn Bhd, has been set up. Future NRG will own 30% equity in LPT Biomass and JTOP 70%.

The green mill in Johor is expected to begin operations at the end of this year.