AMITA HOLDINGS Renames Malaysian Subsidiary and Commences New Business as Regional Headquarters to Accelerate Its Business Development and Expansion in Asia-Pacific Region

AMITA HOLDINGS CO., LTD., a preeminent Japanese provider of circular and sustainability solutions and services, today announced that it will rename its Malaysian subsidiary to AMITA CIRCULAR DESIGN SDN. BHD. in April 2024, which will serve as its regional headquarters to accelerate business development and expansion in the fast-growing Asia-Pacific region.

More specifically, the new entity is responsible for recruiting talent from around Asia, seeking partnerships with local businesses, and developing and expanding market-focused businesses at an accelerated pace. This is a logical extension of the closed-loop resource-recycling business that AMITA has been operating in Malaysia since 2017 into a more elaborate Social Systems Design Business to assist enterprises and municipalities in the Asia-Pacific region in achieving greater corporate and community sustainability.

1. Overview of the new entity

Company name

AMITA CIRCULAR DESIGN SDN. BHD.
(Currently AMITA ENVIRONMENTAL STRATEGIC SUPPORT [MALAYSIA] SDN. BHD.)

Business

Jointly developing circular business models with local businesses and municipalities in the Asia-Pacific region
Recycling municipal and industrial waste into usable materials

Capital

2,300,000 RM (funded entirely by AMITA HOLDINGS CO., LTD.)

To be Commenced on

April 1, 2024 (through a transfer of stocks from AMITA CORPORATION to AMITA HOLDINGS CO., LTD., upon an absorption-type company split)

Leadership team

SATO Hiroyuki, Chairman
YAMATO Eiichi, Managing Director
SUETSUGU Takahide, Director
CHIP KAH SENG, Director

Number of issued shares

2,300,000

Head office

Kuala Lumpur, Malaysia

Regional office

Tokyo (on the premises of AMITA HD's Tokyo office)

2.Background and objectives

The AMITA Group established a solid foundation for expanding its business in the Asia-Pacific region in 2023, accommodating local needs to bolster business which had slumped amid the COVID-19 pandemic. To keep up this momentum, we plan to undertake the following three key initiatives in this region during 2024:

  • Conduct a feasibility study on new business ventures in Malaysia
  • Establish a joint venture in Indonesia to produce and supply alternative raw materials and fuels
  • Prepare to implement and commercialize a comprehensive resource-circulation scheme in Palau

Commencing a regional headquarters in Malaysia will enable us to further step up the pursuit of broader business opportunities and lay the foundation for the Social Systems Design Business in the Asia-Pacific region in a coherent and well-organized manner.

Objectives

■Facilitate faster business decision-making to better accommodate local market needs
■Pursue wider partnership opportunities with local businesses from around Asia, essential for accelerated business expansion
■Recruit talent from around Asia and pursue new business opportunities in the Asia-Pacific region

Rationale for commencing it in Malaysia

■We can leverage the operating resources and business relationships we already have in place in the country.
■It is an English-speaking country and is well situated to facilitate expanding our business to other parts of the Asia-Pacific region.
■The country offers an excellent business infrastructure, which helps us operate efficiently.

3.AMITA's business strategy for the Asia-Pacific region

A circular economy is projected to generate a market worth 420 billion US dollars in Indonesia, Malaysia, and other countries in the ASEAN region over the next several years. The AMITA Group intends to implement the following six strategic initiatives to become a viable player in this fast-growing market:

  1. Increase revenue from the production and supply of alternative raw materials and fuels to cement producers in Malaysia
  2. Launch and commercialize the production and supply of alternative raw materials and fuels to cement producers in Indonesia
  3. Develop a new business of turning unused or little-used biomass materials generated in the oil palm industry into usable materials in Indonesia and Malaysia
  4. Develop a Social Systems Design Business in Indonesia and Malaysia as a first step toward establishing a circular economy and a low-carbon society in the two countries
  5. Participate in a project to establish a circular business model suitable for islands in Palau and extend the business knowhow to other Pacific island nations
  6. Launch a circular business model in India and other Asian countries

Our business foundation in this region lies in the production and supply of alternative raw materials and fuels in Malaysia and Indonesia. At the same time, we will develop a business of circulating and better using natural resources in a region rich in biomass materials. As a next step, we will extend into the Asia-Pacific region the services we are offering in Japan-such as the Cyano Project and MEGURU STATION®-to assist industries and communities in promoting circularity as a basis for achieving greater sustainability in society as a whole.

To make our ambitious endeavor a success, it is essential for us to gain deep insights into social issues and national agendas, including GX (green transformation) strategies, of each country in this region and facilitate greater collaboration among local industries, governments, and universities. To this end, we intend to make the most of our internal and external information and networking resources to bring key players-including subject-matter experts, government officials, startups, and industry and professional associations-together for common causes and then make this network work with Japan Circular Economy Partnership (J-CEP) and Japan Clean Ocean Material Alliance (CLOMA), both of which AMITA is a member of.

AMITA Group's business development and operations in Indonesia and Malaysia

The AMITA Group teamed with the Berjaya Group, a Malaysian conglomerate, to launch the closed-loop recycling of industrial waste in Malaysia in 2017. The joint venture recycles waste and byproducts sourced from diverse industries 100% into alternative raw materials and fuels and supplies them primarily to cement producers. This business helps to reduce the amount of industrial waste bound for incineration and landfilling and to preserve natural resources, as well as assisting cement producers in achieving low-carbon operations.
In preparation for expanding this business into Indonesia, we have been working with Indocement Tunggal Prakarsa, a leading Indonesian cement producer, to conduct a joint business feasibility study in the country, as agreed upon in a memorandum of understanding signed in May 2023.* In addition, we have partnered with Indonesian municipalities and businesses to conduct a preliminary research project in the country, as part of an Urban Collaboration Project for Achieving a Low-Carbon Society, contracted to AMITA by the Ministry of the Environment of Japan.

20240208_01.jpg AMITA BERJAYA Sustainable Resource Management Centre in Malaysia

4.Executive comment

YAMATO Eiichi, Managing Director designate of the soon-to-be-established AMITA CIRCULAR DESIGN SDN. BHD., said:

20240208_02.jpg"It's been seven years since the AMITA Group started operating in Malaysia. The strong support from our business partners and other stakeholders has made our Malaysian business a success. From this experience, we have concluded that our business has a tremendous potential to make a difference on a global arena beyond Malaysia. 'CIRCULAR DESIGN' in the name of the company represents the AMITA Group's vision of designing and achieving an ecosystem society. We are ready to work with like-minded stakeholders in the region to undertake a visionary endeavor to uphold the dignity of human and all other lives, as well as natural ecosystems. "

* Click here to see the press release titled "AMITA HOLDINGS Agrees with Indocement Tunggal Prakarsa on Jointly Conducting Feasibility Study on Pursuing Carbon-neutral, Circular Business Models in Indonesia," dated May 22, 2023.

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