Shareholders' Agreement with CTI Biofuels Malaysia, LLC to Set Up a Biodiesel Plant for Production and Sale of Biodiesel in Sandakan, Sabah
Further to the announcements dated 3 January 2006 and 6 December 2005, the Company has today entered into a Shareholders' Agreement with CTI Biofuels Malaysia, LLC ("CTIBM") of United States of America ("USA") to build, own and operate a biodiesel plant in Sandakan, Sabah for the manufacture and sale of biodiesel on a 60:40 joint venture basis.
IJM Biofuel Sdn Bhd, the joint venture company to undertake the operation of the biodiesel plant, will have an issued and paid-up capital of RM2,500,000 comprising 2,500,000 ordinary shares of RM1 each. The plant will be installed on a modular basis to achieve production capacity of up to 90,000 tonnes per annum of biodiesel, with an estimated project cost of RM74 million. The first of the three modules, for production of 30,000 tonnes per annum, is expected to be operational in the first quarter of 2007.
CTIBM is a 95% subsidiary of CTI Biofuels, LLC, which is a wholly-owned subsidiary of Capital Technologies Incorporated of USA.