KUCHING: South Korea-based Lotte Energy Materials Corp is planning for an initial additional investment of RM1.2bil to further expand its elecfoil manufacturing facilities in Samajaya Free Industrial Park here in Sarawak.
Lotte Energy is a leading provider of advanced battery material.
The Samajaya plant is the group’s first overseas factory to manufacture elecfoil, which is widely used in electric vehicles (EVs) and energy storage items.
According to Lotte Energy senior vice-president Park Ingoo, there is a possibility for Lotte Energy to put in an additional re-investment of RM2.5bil for the plant, which was acquired from ILIN Materials Co Ltd about five years ago.
He was speaking at a briefing for Sarawak deputy-premier Datuk Amar Awang Tengah Ali Hasan on Lotte Energy’s future expansion plans in Sarawak.
Awang Tengah, who is also the state’s International Trade, Industry and Investment Minister, was leading a delegation on a working visit to meet up with existing and potential South Korean investors in Seoul recently.
Despite the global economic uncertainties, Lotte Energy plans to expand its manufacturing plant to make Sarawak the key hub to produce cutting-edge battery materials, said the state’s Trade, Industry and Investment Ministry in a statement.
“The expansion of the manufacturing facility is expected to generate more than 200 jobs which will foster industrial growth and contribute to the local economy,” Park noted.
Meanwhile, another South Korean energy and chemical company, OCI Holdings, has reaffirmed its commitment to Awang Tengah during the meeting with the company’s top executives to expand its manufacturing facilities in Samalaju Industrial Park, Bintulu, with a potential reinvestment of RM3.1bil.
OCI specialises in the production of polycrystalline silicon, hydrogen peroxide and other chemical-related materials.
In 2017,OCI via subsidiary OCI Malaysia Sdn Bhd (OCIM), acquired full ownership of the polysilicon production facility from Japan’s Tokuyama.
To date, OCIM has invested over RM8bil in Sarawak, catering for the solar industry’s polysilicon needs.
OCI’s growth plans include diversifying and expanding its chemical materials production in Sarawak.
This includes joint ventures with South Korea’s Kumho, one of the world’s largest tire manufacturers and Tokuyama to produce epichlorohydrin and semiconductor-grade polysilicon respectively, with combined investments exceeding RM3.2bil.
OCI chairman Lee Woo Hyun has expressed the company’s keen interest in exploring further investments in power development, particularly in renewable energy (RE) via its subsidiary OCI Energy.
With a robust global presence, OCI is a major player in RE and energy storage systems.
Currently, OCI Energy is the largest independent solar developer in Texas, United States.
Awang Tengah, in welcoming Lee’s proposals, highlighted Sarawak government’s commitment to make Sarawak a leader in green energy.
“This collaboration in green power development is poised to enhance Sarawak’s energy security while promoting sustainable economic growth and environmental stewardship,” he added.
During the working trip, Awang Tengah also met with top executives of KH Shinhwa SnC, which is interested in further exploring collaborative business and investment opportunities with state-owned Sarawak Energy Bhd (SEB).
This in particular for the electricity safety enhancement projects, including investment in new technology and solutions for power generation.
KH Shinhwa, a solution provider and consultant for smart energy, smart cities and smart farms, is currently collaborating with SEB on a hybrid microgrid solar solution project worth about US$7mil in investment.
The outcome of the project is expected to provide alternative sustainable energy solutions and set a new benchmark in RE technology.
