Boustead Defence To Produce Propellant At Bentong Plant
May 30, 2011 15:39 PM
SIGNIFICANT MILESTONE ...Defence Minister, Datuk Seri Dr Ahmad Zahid Hamidi (centre) witnessing Boustead Defence Technologies Sdn Bhd Managing Director, Tan Sri Ahmad Ramli Mohd Nor (left) exchanging documents with Prokhas Manager Sdn Bhd Secretary, Eshah Meor Suleiman (right). Previously, propellants used in the defence industry were imported; the BDTSD-PMSB joint venture marked a significant milestone for the defence sector, Ahmad Zahid said.Pic: fotoBERNAMA
KUALA LUMPUR, May 30 (Bernama) -- Boustead Defence Technologies Sdn Bhd (BDTSD), which signed a joint venture (JV) agreement with Prokhas Manager Sdn Bhd today to produce and sell propellants for the defence sector, expects to start initial production at its Bentong plant by end-2012.
Boustead Defence is a unit of Boustead Heavy Industries Corp Bhd (BHIC).
BHIC managing director, Tan Sri Ahmad Ramli Mohd Nor, said Boustead Defence would own 49 per cent of the JV company, Pyrotechnical Ordnance Malaysia Sdn Bhd (POMSB), with the remaining stake held by Prokhas.
The JV company will have an initial authorised share capital of RM50 million divided into 50 million ordinary shares of RM1 each. Upon its incorporation it will have a paid-up capital of RM35.294 million.
Ahmad Ramli said so far, RM58 million has been invested in the plant that would produce double-base propellants for locally-used artillery and rockets for the time being.
"Subsequently we will market the products regionally," he told reporters after the signing ceremony between both parties here today.
Defence Minister, Datuk Seri Dr Ahmad Zahid Hamidi, officiated the ceremony.
Ahmad Zahid said the plant would use raw materials from Slovakia.
"Previously, propellants used in the defence industry were imported and this joint venture marked a significant milestone for our hich-technology defence industry," he said. -- BERNAMA