From April 2014 Iwatani started a piping supply using China-made ASU, through its fully owned Iwatani Singapore, to Tokuyama Malaysia which is located in the Samalaju Industrial Complex, Sarawak of East Malaysia. Within the first quarter of next year the plant having a total capacity of 50t/d of oxygen and nitrogen with the added ASU will be operated for the purpose of backing the existing equipment and supplying by tank trucks to the neighboring users in such regions as Kuching and Miri of Sarawak, and Brunei.

Although there is no information of the gas to be supplied by the plant which started operation and the investment for the additional gas plant, Iwatani employs an ASU made in China taking into account of profitability of the business. The supply of gases will be dealt with by Iwatani-SIG (located at Bintulu, Malaysia with a capital equivalent to about 500 million yen) established in January 2012, owned 60% by Iwatani Singapore and 40% by Southern Industrial Gases of medium-sized industrial gas manufacturer in Malaysia.

Southern Industrial Gases established in 1996 with a capital investment equivalent to about 700 million yen sells about 1.9 billion yen during the latest fiscal term. It has an ASU plant in Senai and a hydrogen plant in Nilai of Malaysia, selling gases to Southeast Asian countries and is engaged in detailed services including its container leasing business.

While Iwatani was looking for a local JV partner to advance into Sarawak, Southern Industrial Gases who was in an MOU relationship with Iwatani in the supply of helium coincidently was intending to enhance its business in the region. That is the story of the foundation of Iwatani-SIG.

The gas consumer at this time is the multicrystalline silicon plant of Tokuyama Malaysia to produce solar batteries, which is a giant plant with the launched investment of about 80 billion yen on the 1st construction period for 6,200t and 100 billion yen on the 2nd construction for 13,800t respectively.
In the Samalaju Industrial Complex in which the plant is located a stable and inexpensive electricity is available from the Bakun power station of 2400MW which is one of the largest power stations in Southeast Asia. Therefore not only Tokuyama but also aluminum and manganese refining enterprises have also advanced there.

Furthermore, as the state of Sarawak has abundant resources including oil and natural gas and a hydraulic power generation potential of 80 million MW, the state government is also proceeding with its development plan. It seems to draw much attention to the expected gas demand for the prospective industrial complex in the future.