Malaysia-based private equity firm Fitters Diversified Bhd has entered into a MOU with Spanish PVC pipe maker Molecor Tecnologia to set up Molecor (SEA) Sdn Bhd (MSSB) to market pressure pipes in Malaysia and other Southeast Asian markets. Fitters will have a 65% equity in the company. The intended activities of MSSB is to manufacture and distribute PVC-O pipes. Dato’ Wong Swee Yee, a Director and major shareholder of Fitters, is also a Director of MSSB.

Fitters was incorporated in 1986 and is listed on the Main Board of the Malaysian stock exchange. Its principal activities are investment holding and trading of fire-safety materials, equipment and fire-prevention systems. The company reported a sharp increase of 111% net profit in 2013, which motivated it to enter into a new line of business, exclusively using Molecor’s technology. According to Fitters, it believes there is a significant potential for PVC-O pipes in the Malaysian market and, generally, in Southeast Asian countries and hence the tie-up.

Meanwhile, founded in 2006, Molecor is a pioneer in the development of the latest technology applying molecular orientation to pipeline solutions. “We’re clearly convinced about the PVC-O pipe possibilities worldwide and the entrance in the Asian market with a reputed partner is a new business venture model with a promising future” stated Ignacio Muñoz, CEO/Founder of Molecor.