Molecor setting up RM80 m facility for pipes in Malaysia

Malaysian pipe maker Molecor (SEA) Sdn Bhd is entering the Southeast Asian water pipe market after securing a project to manufacture and market PVC-O (orientated PVC) pipes under the Hypro brand. The company is also investing about RM80 million to set up the first phase of its PVC-O manufacturing facility in Gebeng, Kuantan. Manufacturing operations are planned to begin by the fourth quarter of 2014.

Molecor (SEA) Sdn Bhd is 65% owned by Malaysian private equity firm Fitters Diversified Bhd with Ricwil (Malaysia) Sdn Bhd and Spanish pipe maker Molecor Tecnologia, holding the remaining 25% and 10% stakes respectively.

The three parties recently signed an agreement, witnessed by the Malaysian Minister of Energy, Green Technology and Water, Datuk Dr Maximus Ongkili, at the Asia Water 2014 Exhibition held in Kuala Lumpur.

The plant will initially have three production lines with a total installed capacity of up to 11,000 tonnes/year. It will double the production in a subsequent phase. The group plans to expand its production capacity over the next 42 months, both locally and in Thailand and Indonesia.

The business will largely serve governments and township developers for both pipe-laying and pipe-replacement. The group is pending Malaysian SIRIM certification and National Water Services Commission (SPAN) certifications, which are expected to be obtained soon.

Spanish firm Molecor Tecnologia developed and patented the molecular orientation technology that gives PVC-O pipes improved mechanical properties and longer service life of up to 50 years.

PVC-O pipes, which are manufactured in compliance with international standards, are resistant to corrosion and natural chemical substances that ensure consistent fluid quality, ideal to distribute high pressure water from water treatment plants for industrial and household usage.

Molecor’s Ignacio Muñoz said, “PVC-O pipes manufactured under Molecor Technology have a track record of effective implementation in several countries including Australia, Italy, Spain, Colombia and Ecuador.” He is confident of the potential of this pipe-manufacturing business and is engaged to replicate that success in other parts of Southeast Asia.


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