ESGL Holdings Limited (NASDAQ: ESGL) Announces Groundbreaking Multi-Year Circular NEWSPAR Supply Agreement with Sentosa Clay Products
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The collaboration between ESGL Holdings Limited and Sentosa Clay Products Sdn Bhd represents a significant stride in the enviro-tech industry, particularly within the realm of sustainable construction materials. The use of NEWSPAR, ESGL's proprietary product, in brick manufacturing could signal a shift toward more eco-friendly practices in the building sector. This development is crucial as the industry grapples with the need to reduce its carbon footprint while meeting increasing construction demands globally.
From a sustainability perspective, the adoption of circular products like NEWSPAR can have a profound impact on resource conservation and waste reduction. The ability to produce sustainable bricks on a large scale, as indicated by the anticipated annual output, suggests that the technology is scalable and could potentially set a new standard for environmental responsibility in construction materials.
ESGL's multi-year agreement with SCP may influence investor perceptions positively, given the growing market interest in sustainable and environmentally conscious investments. The contract with SCP not only diversifies ESGL's revenue streams but also strengthens its position in the sustainable building materials market. The commitment to produce over 10 million bricks annually until 2025 underscores the potential for substantial revenue growth and could attract further partnerships within the industry.
Investors will likely monitor the performance of this agreement closely, as its success could lead to an increase in ESGL's market share and potentially drive up the company's stock value. Moreover, the focus on decarbonization aligns with global trends towards green building standards, potentially opening up new markets and regulatory incentives for ESGL.
The financial implications of ESGL's contract with SCP could be significant. By securing a fixed-term agreement, ESGL ensures a steady revenue stream until the end of 2025. This stability is attractive to investors looking for companies with predictable financial outlooks. Additionally, the partnership with SCP may lead to cost efficiencies in production and R&D, as collaborative efforts often result in shared resources and knowledge.
It will be important to monitor ESGL's financials in subsequent quarters to assess the impact of this agreement on their profit margins. Given that the building industry can be cyclical, the timing and duration of this contract may provide ESGL with a competitive advantage during periods of lower economic activity in the construction sector.
SINGAPORE, Jan. 23, 2024 (GLOBE NEWSWIRE) -- ESGL Holdings Limited (NASDAQ: ESGL) (“ESGL” or the “Company”), a leading innovative enviro-tech company manufacturing circular products, announces the successful conclusion of a multi-year agreement with Sentosa Clay Products Sdn Bhd (“SCP”) to co-produce sustainable bricks for the building industry.
The landmark agreement between ESGL and SCP will see the production of sustainable building materials using the circular product, NEWSPAR. NEWSPAR is a proprietary product from ESGL that provides both practical and environmental benefits. The contractual commitment extends through December 31, 2025.
"SCP's collaborative R&D efforts with ESGL over the past few months have been instrumental in exploring the potential of NEWSPAR as an alternative material in brick manufacturing. Under this contract, SCP anticipates the annual production of more than 10 million sustainable bricks, equivalent to constructing approximately 1,000 two-storey houses," stated Mr. Tan Kuang Yoa, CEO of Sentosa Clay Products Sdn Bhd.
Chairman and CEO of ESGL, Mr. Quek Leng Chuang expressed, "This contract is doubly transformative, as it not only promotes sustainable building solutions, but also provides an alternative revenue stream for the production of NEWSPAR. With NEWSPAR, we are contributing to the decarbonization of the building sector. This collaboration exemplifies a true circular economy, made possible through strong partnerships with entities like SCP and the continued support of ESGL customers."
About NEWSPAR
NEWSPAR is an innovative circular product regenerated by ESGL, from waste sludges originating in manufacturing plants. Its production relies solely on renewable energy, distinguishing it as a more sustainable alternative to materials extracted through mining processes.
About ESGL Holdings Limited
ESGL Holdings Limited (“ESGL”) is a holding company incorporated as an exempted company under the laws of the Cayman Islands. ESGL conducts all its operations through its operating entity in Singapore, Environmental Solutions (Asia) Pte. Ltd. For more information, including the Company’s filings with the SEC, visit https://esgl.asia.
About Sentosa Clay Products Sdn Bhd
Sentosa Clay Products Sdn Bhd (“SCP”) is a Malaysian Brick Making Company, uses a combination of traditional brick makers craft with state-of-the art technology, producing high-quality bricks and pavers for the building industry.
Forward-Looking Statements
Certain statements in this press release may be considered to contain certain “forward-looking statements” within the meaning of “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “target,” “believe,” “expect,” “will,” “shall,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” “forecast,” “intend,” “plan,” “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Examples of forward-looking statements include, among others, statements made in this press release regarding anticipated future financial and operating performance and results, including estimates for growth, gross margins, adjusted EBITDA, potential regional expansion, development of new products, partnerships, customer relationships, demand for waste processing, and sales of circular products. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on ESGL management’s current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results and outcomes may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
A further list and description of risks and uncertainties can be found in documents filed with the Securities and Exchange Commission (“SEC”) by ESGL and other documents that the Company may file or furnish with the SEC, which you are encouraged to read. Any forward-looking statement made by us in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise, except as required by law.
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