Universiti Malaysia Sabah (UMS) has signed a Memorandum of Understanding (MoU) with a local company Hoyu Recycling Retreading Sdn Bhd yesterday aimed at carrying out research to help Sabah to produce its local brand tyres.
UMS was represented by UMS Faculty of Engineering dean Prof Dr Abdul Karim Mirasa while Hoyu Recycling Retreading was represented by its chief executive officer Simon Tu.
State Trade and Industry Minister Datuk Seri Wilfred Madius Tangau said the MoU was a positive development towards the development of the local brand-based industry in Sabah.
The agreement, a five-year collaboration between UMS and Hoyu Recycling Retreading, would start by retreading of used tyres by January next year, said Madius to reporters after witnessing the signing ceremony.
He said the preliminary study would be carried out by UMS first and by the third quarter of next year, a new local tyre brand would be produced.
He said upon reaching production targets, his ministry would then establish a tyre manufacturing plant at the Kota Kinabalu Industrial Park (KKIP).
"We expect the plant to be established in 2020 … and it (the plant) will use rubber purchased from the Sabah Rubber Industry Board (LIGS) of about 10 tonnes a month," he said.
Meanwhile, State Agriculture and Food Industry Minister Datuk Junz Wong who was present at the event, believed that the efforts would benefit the rubber tappers in Sabah as his ministry was currently working on initiatives to stabilise rubber prices in the state.