Mega First owns 60% of Shaoxing Mega Heat & Power Co., Ltd.
Shaoxing Mega was established in the Shaoxing County of Zhejiang Province of the People’s Republic of China by Mega First Power Industries Sdn Bhd and Qixian Heat & Power Co., Ltd of Shaoxing County as a sino-foreign co-operative joint venture on 23 October 1995 with an operating period of 22 years.
Shaoxing Mega is a heat and power producer which owns, operates and maintains a 83MW coal-fired heat and power plant in Qixian Town, Shaoxing City. The plant, located about 15km from Shaoxing City, generates both heating and electric power. It has an installed capacity of 83MW with a steam supply capacity of 520 tonnes per hour. Steam is supplied to the neighbouring factories whilst electricity is transmitted and sold to the Power Bureau through the local grid. Shaoxing Mega has approximately 140 steam users. Steam sales contribute approximately 2/3 of sales while the remaining portion relates to energy sales.
Zhejiang was classified as a Coastal Open Economic Zone. This is similar to other Economic Zones in the South of China such as Shenzhen, Zhuhai, Guangzhou, etc. As a result of this, Zhejiang’s pace of development has accelerated. Hangzhou is the capital of Zhejiang and is a well-known tourist destination.
Listed among the nation’s top ten counties and located in the coastal economic open zones, Shaoxing County is one of the regions in China which enjoy full-fledged civilian-run and market economy. An open economy has taken shape based on industry and complemented by the synchronized development of trade, tourism, architecture, real estate and agriculture. The County has become a magnet for overseas investors.
Textile industry based on shuttle weaving is the pillar of the Shaoxing County, which also covers chemical fiber spinning, yarn spinning, knitting, printing and dyeing, and apparel manufacturing. There are some 30,000 world-class shuttle looms, weaving annually over 3 billion meters of textiles. The annual printing and dyeing capacity is about 4 billion meters. The County produces 400,000 tonnes per annum of raw material for chemical fiber, the consumption of which accounts for 25% of the total in China. The output value of the textile industry exceeds 60% of the total industrial output value of the County.
Qixian’s main activity has been agriculture in the past. With the rapid development in China, large areas have been transformed into industrial sites dealing mainly in textile production, many of which are foreign joint ventures.
Mega First owns 51% of Serudong Power Sdn Bhd.
Serudong Power built, owns and operates a 36MW diesel-fuelled power plant in Tawau, Sabah. The Company is licensed to exclusively supply electricity to Sabah Electricity Sdn Bhd for a 21-year concession period from 2 December 1996.
Serudong Power’s power plant consists of 3 identical blocks of medium-speed generating sets, fired mainly by medium fuel oil procured from Petronas Dagangan Berhad as part of a 21-year Fuel Supply Agreement. Wartsila NSD Corporation of Switzerland designed the plant’s 4-stroke engines, while Hyundai Heavy Industries Co., Ltd and Hyundai Corporation Ltd were the licensed manufacturer.
Mega First Power Services Sdn Bhd, a wholly-owned subsidiary of Mega First is responsible for the operation and maintenance of the power plant via an Operation and Maintenance Agreement for a period of 12 years from 2 December 1996 and subsequently was extended to 1 December 2017.