Malaysia – Malaysia’s UEM Group Berhad is exiting the end-of-life vehicle (ELV) recycling sector by selling the full stake in its Special Builders Sdn Bhd (SBSB) operation. According to the Kuala Lumpur-based company, the divestment is in line with the group’s strategy of ‘disposing non-core assets to realign its operations’.
The SBSB plant in Bandar Proton, which has scrapped roughly 47 500 vehicles since its launch in 2008, is set to be sold via an open tender process to a qualified Malaysian entrepreneur. UEM Group hopes that this move will ‘offer an opportunity for the acquiring party to tap into the future upside of ELV services in Malaysia’.
Apart from wanting to focus on its identified core businesses of expressways, township & property development, engineering & construction and asset & facility management, the Malaysian group also acknowledges that it is pulling out of the ELV market in response to the government’s strategy to sell 10 non-core assets to Bumiputera companies.
According to UEM Group, SBSB’s buyer must meet certain criteria, including being a 51% Malay-owned and -managed company with relevant experience in the vehicle recycling sector.
For more information, visit: www.uem.com.my
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