Renewable energy business to be robust

“There are good prospects for our product portfolio related to renewable energy in hydro and wind power generation,” managing director Juan Aguero said.

He said there had been a global increase in demand for this type of green and renewable energy.

“This is also happening in Malaysia, where we are currently tendering for jobs related to the construction of new hydro power plants as well as rehabilitation projects. We are studying the feasibility of developing wind power generation in Malaysia,” he said.

He added that about 70% of Malaysia’s electricity supply was still generated by fossil fuel and coal.

“Internationally, we signed recently an agreement with PetroVietnam to unleash wind and hydro power potential,” he said.

On the issue of the additional compensation claim made by an IMPSA-led consortium related to the turbine procurement contract for the Bakun Hydroelectric Dam, Aguero revealed that the consortium had reached an agreement with Sarawak Hidro Sdn Bhd.

“After about two years of discussions, we have reached a consensus on the basis of the escalation of raw material prices as well as the increase in the costs of manufacturing and transportation.

“It is also important to highlight now that all our works are on schedule and many components have already been delivered to the site,” he said.

On the progress of its manufacturing plant in Lumut, Aguero said great efforts and investment had been made to upgrade its facility.

“We have been beefing up the training schools for our employees and have purchased machinery to produce complex components as well as generators,” he said.