KUALA LUMPUR: Ageson Bhd has decided not to continue with the supplies of sand to several parties due to the high shipping costs.
“The board wishes to inform that the company has not commenced the sand trading business and has decided not to continue with the supplies of sand to the respective parties in relation to the sand offer letters as the company views the supplies of sand are no longer viable due to the high shipping costs caused by Covid-19 pandemic,” Ageson said in a filing with Bursa Malaysia.
Ageson said the sand offer letters did not constitute any legally-binding commitment and there were no definitive agreements entered between the parties.
In April 2020, Ageson said a Hong Kong-based company is planning to buy natural sand from its wholly owned unit Esa Pile Sdn Bhd.
Ageson said Esa Pile had received a letter of intent from Boyijun Resources (HK) Ltd to to purchase sand for a contract value of US$26.6mil (RM116.8mil).
In May 2020, Esa Pile accepted a purchase order from Guangzhou Kaishengda Industrial Co Ltd for river sand and sea sand for a period of 15 years, a contract valued about Chinese Renminbi 44.8 billion (approximately RM27.5bil).
In August 2020, Ageson’s subsidiary Ageson Enterprise Sdn Bhd has secured a US$79.50mil (RM339.03mil) contract from Techpack Solutions Co Ltd (Techpack) for the supply of silica sand.
Source: The Star