Malaysian bunker demand has grown significantly in recent years. File Image / Pixabay
Malaysian manufacturing firm Techfast Holdings is seeking to diversify its business into the bunker industry and hire five employees into a new petroleum trading division.
Techfast is proposing to take a 35% stake in Malaysian fuel supplier CCK Petroleum, it said in a regulatory filing Wednesday. The deal will be worth 26.25 million ringgit ($6.5 million) in cash and shares.
CCK's main focus is bunker supply at Johor, Penang and Port Klang, according to the filing. The firm made a profit before tax of 1.03 million ringgit in 2019, up from a 379,316 ringgit loss the previous year.
The firm's aim is the "diversification of the existing principal activities of Techfast and its subsidiaries to include trading of petroleum products, oil bunkering and other related activities," the company said.
Techfast's current business is focused on manufacturing electronic hardware, materials and parts.
The company's new petroleum trading business will seek to hire two traders, a contract manager, a hedging manager and a risk manager in the first quarter of this year.