In a stock exchange filing on 11 August, Dialog announced that its wholly owned Dialog Corporate Sdn Bhd inked a memorandum of understanding (MoU) with Diyou Fibre (M) Sdn Bhd (DFMSB) yesterday (August 10), which outlines an understanding between the parties to set up a special purpose vehicle (SPV) that will build, own and operate a food-grade recycled polyethylene terephthalate (recycled PET) pellets production facility. According to Dialog, the facility will use recycled PET flakes as raw material to produce food-grade recycled PET pellets, which the SPV will sell to food and beverages customers. Dialog will have a 51% equity interest in the SPV, while DFMSB will hold 49%. DFMSB is an established recycling and manufacturing company in Malaysia, with over 30 years of experience in the post-consumer plastics recycling industry. The total investment outlay in the venture is estimated to be about US$25 million (about RM106 million), which Dialog plans to finance using internal funds and borrowings.

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