Sino Construction gets nod to start micro power plants in Korea

SINGAPORE - Mainboard-listed Sino Construction said on Wednesday that a subsidiary has received approval to start operations at its micro power plants in Korea.

Magnum Modular Power Generation (MMPG), a joint venture with Primeforth Renewable Energy Limited, completed construction of its first micro power plant on April 29, and is building a second plant that is expected to be ready by end July.

MMPG's proprietary advances in biofuel technologies and micro power plant development will enable immediate rollout in the supply of power generation, the company added.

Said its interim executive director Drew Madacsi: "The licence allows MMPG to operate the first two micro power plants perpetually, giving us renewed confidence in the statutory processes in South Korea. The successful rollout of the micro power plant programme is important to the company's long-term cashflow strategy."

The start of the micro power plants in Korea will have a positive impact on the group's earnings for the current financial year, Sino Construction said.

The company, which saw the resignation of the previous executive director and non-executive chairman, has been working to restructure its business to pursue opportunities in the renewable energy sector that would enable it to pay a consistent dividend over time. In April, it sold $122.5 million worth of non-performing assets as part of the restructuring that began in February.