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Acromec incorporates two new subsidiaries
ENGINEERING services provider Acromec has incorporated two new subsidiaries, as it expands into the renewable energy sector in Indonesia.
On Tuesday, the company announced in a Singapore Exchange filing that the first new subsidiary in Singapore is Acropower, an 80:20 venture with Malaysian green energy specialist, Green Energy Resources (M) Sdn Bhd, of which the latter holds a 20 per cent stake.
Early last month, Acromec signed a Memorandum of Understanding with Green Energy Resources to explore opportunities in the renewable energy sector.
Both parties will provide manpower and other resources to explore opportunities for Acropower to work on projects related to electricity generation using sustainable feedstock, possibly on a build-own-operate basis, Acromec said.
The second new subsidiary Acromec has established in Indonesia is PT Acromec Trading Indonesia.
The firm said that this move allows it to provide its engineering products and solutions to customers in Asean's biggest economy, which is in line with its plans to expand beyond Singapore.
Acromec will hold a 67 per cent stake in PT Acromec Trading Indonesia, while the remaining 33 per cent will be held by an existing employee of the group.
The incorporation of both subsidiaries was funded by internal resources and is not expected to have any material impact on the net tangible assets per share or earnings per share of the company for the current financial year ending Sept 30, 2018.
Acromec closed at S$0.29 on Tuesday, up three Singapore cents, or 11.5 per cent.