SCIB partners with IRIX for undersea cable project

Sarawak Consolidated Industries Bhd (SCIB) has taken a significant step towards its involvement in the SEA-H2X Cable System project by entering into a memorandum of understanding (MoU) with IRIX Sdn Bhd. 

IRIX, as the sole shareholder of IRIX SEA H2X, is part of an international subsea cable consortium responsible for this ambitious project connecting Hong Kong SAR China, Hainan China, Philippines, Thailand, Malaysia (Borneo Island), and Singapore.

With the estimated value of SCIB’s participation in the project being around RM250 million, the MoU provides SCIB with an opportunity to acquire up to 30% of IRIX SEA H2X and collaborate on its future development and expansion.

The specific terms and conditions of this collaboration will be further discussed and mutually agreed upon.

In a separate statement, SCIB said the initiation of the MoU marks a transformative step in its growth strategy, setting the stage for a collaborative partnership with significant potential benefits. I

t said that the joint venture is projected to provide both companies with ample opportunities to leverage their combined strengths and resources, ensuring the successful execution of the project. 

“The selection of SCIB as a strategic collaborator for this significant project underscores our strong capabilities and robust reputation in the industrialised building system sector,” said SCIB’s MD Ku Chong Hong.

“We eagerly anticipate the mutually beneficial outcomes this project promises to bring and look forward to strengthening our relationship with IRIX and other partners for more such ventures in the future.” 

Beyond immediate financial prospects, SCIB believes that the MOU aligns with its long-term growth and value delivery goals.

While the MOU is not anticipated to have a significant financial impact on SCIB or its group of companies, it represents a strategic move towards fostering long-term profitability.

Following this announcement, SCIB’s shares gained 2.5 sen or 5.43%, closing at 48.5 sen today, with the company’s market capitalization standing at RM311 million. –TMR