Kuala lumpur: SumiSaujana Group Bhd, through its wholly-owned subsidiary SumiSaujana TCM Chemicals Sdn Bhd (SSTCM), is set to further diversify into bio-based specialty chemical materials this year, leveraging its core capabilities in producing both ready-formulated and custom-made specialty chemicals and additives.
According to BERNAMA News Agency, SumiSaujana has initiated this effort through a collaboration with Zhangjiagang CoolisT Life Technology Co Ltd (CoolisT Group). The partnership aims to jointly develop and commercialize bio-based polyols derived from renewable vegetable oils, intended for use in polyurethane foams in CoolisT Group's furniture and bedding products.
SumiSaujana executive director and chief operating officer Ramli Mohamad highlighted the company's strategic entry into the biopolymer sector, focusing on biodegradable products. He noted a global shift in consumer preference towards biodegradable raw materials due to concerns over toxic substances and associated health risks.
SSTCM's chemical products, predominantly comprising drilling fluids, serve various sectors within the oil and gas industry, encompassing upstream, midstream, and downstream operations. Ramli stated that the diversification is timely, positioning the company to accelerate the global adoption of sustainable solutions that meet international environmental and performance standards.
Furthermore, SSTCM is conducting research and development on sustainable specialty chemical solutions for data center cooling applications in Malaysia, with an aim to enhance energy efficiency and reduce carbon intensity.
A portion of the RM74.4 million raised from SumiSaujana Group's initial public offering (IPO) last year, specifically RM7.6 million, has been allocated to support the company's diversification into biodegradable chemicals.
Looking ahead, Ramli indicated that SumiSaujana will prioritize strengthening internal operations while securing its existing markets. Despite stable revenue, tighter margins due to geopolitical uncertainties have increased the importance of maintaining the company's market position.
Operating since 2010, the oil and gas specialty chemicals manufacturer has successfully established itself in key international markets, with over 70 percent of its revenue derived from overseas. Recently, SumiSaujana's share price saw a slight decrease, closing at 11 sen with 329,700 shares traded.