JAG Berhad (“JAG” or the “Company”), a total waste management and resource recovery specialist, is pleased to announce that JAG Renewable Energy Sdn. Bhd. (“JAG Renewable Energy”) has entered into a Sale and Purchase Agreement (“SPA”) with Kobe Steel, Ltd. for the acquisition of a freehold industrial property located at H.S.(D) 329003, PT 58002, Pekan Hicom, Daerah Petaling, Selangor Darul Ehsan, for a total purchase consideration of RM36.89 million.
The acquisition represents a strategic step in JAG’s proposed expansion of its Total Waste Management (“TWM”) business division. The freehold industrial land in HICOM, Shah Alam, is intended to support the Group’s next phase of operational growth through the planned establishment of new production lines and expanded storage capacity. With a total capital requirement of approximately RM60.0 million, inclusive of land and equipment, the expansion is expected to strengthen JAG’s processing capabilities and operational flexibility, while positioning the Group to capture future resource recovery opportunities arising from Malaysia’s expanding digital infrastructure, renewable energy and electrification trends.
As investments into data centres, solar energy infrastructure and electric vehicles continue to accelerate, these assets are expected to generate growing volumes of end-of-life recyclable materials over time. JAG believes the expansion will enhance its readiness to recover valuable materials from these future waste streams through its established recycling and resource recovery capabilities.
Dato’ Ng Meow Giak, the Executive Director of JAG Berhad, commented, “This acquisition is not merely an addition to our industrial asset base, but a strategic investment to support the next stage of our TWM business expansion. As Malaysia continues investing in digital infrastructure, renewable energy and electrification, new waste streams will gradually emerge as these assets reach the end of their lifecycle. End-of-life data centre hardware, solar panels and EV batteries will require specialised recycling, material recovery and environmentally responsible waste management solutions. By expanding our processing capacity and storage capabilities today, we are positioning JAG to capture these future opportunities while continuing to support our customers with reliable, compliant and environmentally responsible waste management solutions”
He added, “Waste management remains a highly regulated industry with significant technical, operational and compliance barriers to entry. Building the infrastructure, recovery capabilities and regulatory readiness required to support future waste streams takes time. This expansion allows us to prepare ahead of demand, strengthen our ability to recover higher-value materials from increasingly complex waste streams and reinforce JAG’s long-term role in supporting Malaysia’s circular economy.”
The acquisition will be financed through a combination of internally generated funds for the 10% deposit and bank borrowings for the remaining purchase consideration.
Moving ahead, the proposed acquisition is expected to strengthen JAG’s long-term growth platform by providing additional industrial space to support future production lines, storage capacity and operational requirements. Beyond supporting its existing industrial waste recycling activities, the expansion is expected to position the Group to capture emerging end-of-life recycling opportunities arising from data centre hardware, solar panels and EV batteries as these infrastructure assets mature over time.
This will complement JMI’s existing and regulatory expertise, enhancing the Group’s ability to serve customers requiring reliable, compliant and environmentally responsible waste management solutions while supporting Malaysia’s transition towards a more circular economy.
