KUALA LUMPUR: Building materials wholesaler Unitrade Industries Bhd is expanding its portfolio into the licensed manufacturing of semi-underground waste management containers following a new partnership with Finland's Molok Oy.
The group announced that its indirect 60-per cent-owned subsidiary, Winnson Ecotech Sdn Bhd, entered into a technology transfer and licensed manufacturing agreement with Molok on Oct 26.
Molok, headquartered in Ylöjärvi, Finland, is a waste collection solutions specialist and part of the European pre-collection waste management leader, SULO Group.
Under the agreement, Molok will transfer its manufacturing technology and know-how to Winnson Ecotech to locally produce the Molok Classic semi-underground waste collection container.
The licensed product is specified as a value-engineered 5m³ 2-hook hard container equipped with a lid. Molok will order and retain ownership of the rotomoulding tools and dies used for production.
As part of a 12-month transitional arrangement, Winnson Ecotech will initially purchase imported finished container units from Molok to meet supply commitments pending the commencement of local production.
To support the venture, Unitrade will provide a corporate guarantee to Molok to secure Winnson Ecotech's Euro-denominated licence fee and payment obligations.
Winnson Ecotech has been granted an exclusive, non-transferable, and non-sublicensable license initially for the state of Johor.
The agreement features a scalable expansion plan, automatically extending to cover all of Malaysia if Winnson Ecotech achieves its prescribed cumulative sales milestone in Johor during the first contract year.
Subsequently, the license will expand to Indonesia if the company meets its Malaysian sales milestone in the second contract year.
Simultaneously, Winnson Ecotech signed a distribution agreement with Blue Marble Sdn Bhd, as the exclusive distributor of the locally manufactured Molok Classic containers throughout Malaysia, which includes servicing the Johor State Smart Deep Collection System programme.
This strategic alliance is positioned to capture opportunities stemming from the Johor Smart Deep Collection System, an initiative being implemented by the Johor State government through Johor Corporation (JCorp) to replace conventional waste collection infrastructure with modern, semi-underground systems.
The license agreement carries an initial term of three years starting from the production commencement date, which is targeted for no later than March 31, 2027.
It includes an automatic renewal for two successive one-year periods, contingent upon Winnson Ecotech achieving cumulative minimum volume requirements.
The agreements are not expected to have a material effect on Unitrade's net assets, earnings per share, or gearing for the financial year ending March 31, 2027, but are projected to contribute positively to future earnings from the production commencement date.
Unitrade's managing director (MD) Nomis Sim Siang Leng stated the partnership is a vital step in developing new technical competencies within the group.
"Through this partnership with Molok, we are able to bring proven European waste collection technology to the Malaysian market while building local production capabilities that support more cost-efficient deployment, shorter lead times and stronger after-sales service," Sim said.
He added that the Johor initiative serves as an excellent starting point that could eventually scale across Malaysia and Indonesia as environmental awareness drives the adoption of sustainable waste systems.
"This partnership also aligns with our strategy to build earnings visibility in higher value-added businesses that are complementary to our existing verticals," he noted.
Molok's MD Teemu Kovero highlighted that Malaysia and Indonesia are key growth markets for modern waste management infrastructure.
"We are confident that Winnson Ecotech's local production capability, backed by the engineering expertise of Molok and SULO Group, will help set a new standard for semi-underground waste collection in the region," Kovero said.
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