30/1/2006 Business Times (Malaysia)  -  DXN Holdings Bhd has announced that its wholly-owned subsidiary, Future Nutri Sdn Bhd, is setting up a 50:50 joint-venture company with Green Diesel Corp from the US to venture into the biodiesel business.

The joint-venture company, Ewin Resources Sdn Bhd, will conduct the business of designing, constructing, owning and operating a biodiesel processing plant, including the processing, manufacturing, selling, distributing and trading of biodiesel products.

Concurrent with the agreement signed by both parties, Ewin Resources has entered into a plant equipment agreement with another American company Plant Sonorawest Co Inc whereby Sonorawest will design, develop, construct, install and test the biodiesel processing plant for a total consideration of US$11.5 million.

Ewin Resources' authorised share capital is RM100,000 while its issued and paid-up share capital is RM2.

Green Diesel is an investment holding company with an authorised share capital of US$10 million while its issued and paid-up share capital is US$9.6 million.

DXN told Bursa Malaysia yesterday that the proposed joint venture is in line with the Government's initiative to migrate to renewable energy supply under the National Biofuel Policy. It will also enable the company to diversify its business into biofuel industry, a renewable energy source, which is expected to enhance its future earnings capability.

DXN said it believed the prospects of Ewin Resources are positive in light of the growing demand for biodiesel as an alternative renewable energy to the diminishing reserves of fossil fuel.