Annual Report 2012 - ecoWise Holdings Limited

ecoWise Holdings Limitedannual report 2012 17BUSINESS OVERVIEWRUBBER COMPOUND MANUFACTURING AND TYRERETREADING BUSINESSThe Group’s rubber compound manufacturing and tyre retreadingbusiness are undertaken by Sunrich Integrated Sdn. Bhd. and itssubsidiaries (“SRIT Group”) based in Malaysia. In March 2012,Sunrich Integrated Sdn. Bhd. became a wholly owned subsidiaryof the Group following the acquisition of the balance 30% equityinterest in the company. The principal activities of SRIT Group areas follows:• Manufacturing of rubber compounds and custom madecompounds such as precured tread liners, cushion gum,perforated sidewall veneer and masterbatch for tyre retreading,industrial belting and other industries;• Retreading of tyres and total tyre management services. TheGroup manufactures retread tyres under brand names suchas Suntex, Winner, Autoways and Trakar through its marketingarms; and• Manufacturing of specialty rubber compounds for the IT,automotive and other industries.The integrated business model of SRIT Group allows operationalefficiency and cost savings to be achieved within its businessunits. SRIT Group serves a variety of customers and continuouslyengages on research and development program to evaluate themanufacturing of economically viable ‘low carbon’ and environmentalfriendly products for the rubber and tyre industries.The Group will be extending its total tyre management businessinto Chongqing, China, through a 65% held joint venture companyestablished in December 2012, Chongqing eco-CTIG RubberTechnology Co., Ltd. under a joint venture agreement enteredwith Chongqing Municipal Transport Development and Investment(Group) Co., Ltd which is Chongqing municipal’s largest state ownedtransport logistic group.USED COPPER SLAG RELATED BUSINESSThe Group is a pioneer in repurposing the recycled copper slagas an approved sand alternative used in the construction industry.Geocycle Singapore Pte Ltd (“GeocycleSingapore”), the Group’s joint venture withHolcim Singapore, owns and operatesSingapore’s largest waste copper slagprocessing plant with Holcim Singaporeproviding exclusive offtake of all its products.The main use of washed copper slag afterproper processing by Geocycle Singaporeis in ready-mix concrete for the productionof eco-concrete TM .ELECTRICAL AND ELECTRONICWASTE MANAGEMENTUnder a joint venture with ZhongtianEnvironment Protection Industrial GroupCo., Ltd, the Group holds a 15% stakein Chongqing Zhongtian Electronic WasteManagement Co., Ltd which has the exclusivelicense to operate special business concessionas the sole operator to carry out the businessof collection, recovery, processing anddisposal of electrical and electronic waste inChongqing, China for a period of 12 yearswith effect from October 2010.ORGANIC MATERIALS AND RESOURCESThe Group’s 15,000 m 2 composting facilityat Sarimbun Recycling Park is capableof processing more than 24,000 metrictonnes of horticultural waste each year.Using the Group’s proprietary in-vesseltechnology, ecoWise Active CompostingTechnology, ecoACT TM , the Group’s whollyowned subsidiary ecoWise Resources PteLtd produces compost that can be used asorganic fertilizer and also soil conditionerthat improves nutrients level, soil aerationand nutrient retention capabilities andprevents soil erosion.