02 Jul 2020 Poly Glass Fibre Ventures Into Freshwater Aquaculture
KUALA LUMPUR (July 2): Poly Glass Fibre (M) Bhd, which recently announced its diversification into the production of personal protective equipment (PPE), today reported another new venture — freshwater aquaculture.
The fibre glass wool manufacturer said it is forming a 50-50 joint-venture (JV) company with Hong Len Aquatic Sdn Bhd (HLA) to set up and manage a hatchery for freshwater aquaculture in Tanjung Malim, Perak.
Poly Glass said HLA is involved in breeding and commercialisation of high-value freshwater fish, as well as research and development.
“HLA and its founder have been involved in the business of fish fingerlings since the 1980s, and have a wealth of experience and awards in fish cultivation,” the company said in a filing with Bursa Malaysia.
Under the JV, Poly Glass will provide the use of land via its wholly-owned subsidiary Golden Approach Sdn Bhd (GASB), while HLA will equip the necessary aquaculture hatchery technology, operation model and market distribution network.
“The capital investment for the JV is financed by its internally generated funds,” the company said.
On the rationale for the venture, Poly Glass said it sees opportunities arising from a decreasing trend of locally produced freshwater fingerlings.
“In view of this and the market condition, GASB is partnering with HLA to venture into the business of aquaculture with the focus on supplying fish fingerlings,” the company said.
It added that the JV company aims to set up a 50-acre (20.23ha) freshwater aquaculture centre, with an integrated indoor breeding and grow-out facility with annual fish fingerling capacity of five million pieces per year.
On May 21, Poly Glass announced that it is venturing into manufacturing of melt-blown non-woven fabric, a vital component of surgical face masks, due to strong demand for PPE amid the Covid-19 pandemic.
Poly Glass, which principally manufactures fibre glass wool and its related products, is seeking to address increasing demand for face mask material due to the ongoing pandemic.
Shares in Poly Glass closed two sen or 4.9% lower at 38.5 sen today, giving the company a market capitalisation of RM62 million.