SK ecoplant secured 30% stake in Malaysia's waste management company Cenviro

Lim Chang-won Reporter() | Posted : May 20, 2022, 13:16 | Updated : May 20, 2022, 13:16

[Courtesy of SK ecoplant]

SEOUL -- SK ecoplant secured a 30 percent stake in Cenviro, a waste management service provider in Malaysia, to cement its competitiveness as an environmental and energy solution provider and secure its foothold in Southeast Asia. Financial terms were not disclosed, but the deal reflects SK ecoplant's active push for business expansion abroad.

Cenviro, which operates Malaysia's first integrated waste management center, specializes in solid waste management and public cleansing, electronic waste (E-waste) management. Used electronics which are destined for refurbishment, reuse, resale, salvage recycling through material recovery, or disposal are considered E-waste,
     
A stock purchase agreement was signed on May 20 in an online ceremony attended by SK ecoplant CEO Park Kyung-il and Amirul Zahir, managing director of Khazanah Nasional Berhad, the strategic investment fund of the Malaysian government, which controls Cenviro.

Malaysia would become a base for business expansion into Singapore and Indonesia, SK ecoplant said, adding it would provide advanced waste solutions through collaboration with SK member companies in Malaysia. Waste management includes the collection, transport, treatment and disposal of waste.

Through the strategic partnership with Cenviro, SK ecoplant said it was selected as partner in a competitive bid organized by Khazanah by actively utilizing its strengths in efficient waste incinerators and landfill operations, as well as artificial intelligence and digital transformation technologies. 
   
SK ecoplant, a unit of South Korea's SK Group, would use Southeast Asia as an anchor for its Bolt-on acquisition and entry into Europe and North America. Bolt-on acquisition refers to the acquisition of smaller companies, usually in the same line of business, that present strategic value. 

"The fact that we were selected as a strategic partner in the fierce competitive bidding involving global companies is a meaningful achievement that proved our competitiveness in the environmental business," Park said, vowing to export platform and solution technologies that can be applied to environmental businesses by accumulating new approaches and technologies.

SK ecoplant has actively promoted eco-friendly businesses. In February 2022, the company acquired TES Envirocorp, a Singapore-based provider of synchronized E-waste management solutions, for about $1.0 billion to secure its solid presence in the recycling of discarded electrical or electronic devices such as waste electric vehicle batteries. 
© Aju Business Daily & www.ajunews.com Copyright: All materials on this site may not be reproduced, distributed, transmitted, displayed, published or broadcast without the authorization from the Aju News Corporation.