Another older article (Feb 2004). Gives an idea of their resins business which is used to manufacture particle boards, MDF and plywood. Given HEXZA's undemanding P/E, I would think that higher P/E companies, possibly competitors of MIECO and EVERGRN, may want to consider taking over this part of HEXZA's business to boost their earnings. E.g. MIECO trades at a P/E of 30, that if it acquires another coy with a P/E of say 10 with the same size, that's an immediate reduction of MIECO's P/E from 30 to 20, which will trigger a market re-rating. Anyway, that's just a speculation on my part.
Hexzachem, Norsechem to use technology from Orica Australia
18 February, 2004
Adhesive and resins manufacturer Orica Australia Pty Ltd will transfer its technology in the manufacture and application of low-emission resins to Hexzachem Sarawak Sdn Bhd and Norsechem Resins Sdn Bhd.
Hexzachem and Norsechem, both subsidiaries of Hexza Corp Bhd, will use the technology to manufacture particle boards, medium density fibre boards and plywood panels.
Orica, Hexzachem and Norsechem signed a technology licensing agreement in Kuching last Thursday. The signatories were Orica's Adhesive and Resins General Manager Dr George Barnett, and Hexza Chairman Dr Fong Weng Sum and Chief Operating Officer Jorma Kalevi.
The agreement will pave the way for joint product development by Hexzachem and Norsechem, increase their product range, and enhance the quality of their existing products.
Fong said the agreement represented Hexza's continuous efforts to apply the latest resins technology and formulations to cater to the increasing demands of customers. Barnett said Orica's partnership with Hexza would enhance its presence and influence in this region.
More than 70% of Hexzachem and Norsechem products are exported to Japan, Europe, and the US, among other markets.
Adapted from "The Star", 18 February, 2004