Petaling Jaya, 17 July 2017 – ML Global Berhad (MGB), a subsidiary of LBS Bina Group Berhad, has partnered with Sany Construction Industry Development (M) Sdn Bhd (SANY (M)), a subsidiary of Sany Group Co. Ltd (“SANY Group”), to form a joint-venture (JV) entity; making way for the set-up of a precast concrete panel manufacturing plant in the central region of Malaysia within the next six months. The JV is set to enhance MGB’s offerings to the local construction industry as it introduces the Industrialised Building System (IBS) Solution.
“This partnership is a very significant step forward. We are confident the JV company will grow in the area of precast concrete technology with the transfer of technical know-how from SANY (M) including the design, manufacturing and installation of precast concrete, as well as the usage of precast concrete machineries. This JV further strengthens our position to deliver excellence through innovation and quality assurance in our field of expertise,” said ML Global Berhad Group Managing Director, Tan Sri Lim Hock San.
The new precast concrete panel manufacturing facility will produce, market, sell and install precast concrete products, contributing to local housing and commercial development projects. MGB and SANY (M) will have a 51% and 49% stake in the JV entity respectively.
The IBS system is an innovative technique which increases the efficiency, quality and productivity of projects. The successful implementation of IBS results in faster project completion as well as cleaner, neater and safer construction sites. Other benefits of the IBS system include reduced dependency on manual labour required at construction sites and greater quality control. Construction time is reduced and buildings are completed sooner, allowing an earlier return of investment. The reliability of the IBS system also makes it possible for improved planning and even completion of projects ahead of schedule in certain cases, further helping developers deliver value to investors or home owners awaiting their dream homes.
LBS Bina’s future developments have a potential GDV of RM30 billion. As a subsidiary of LBS Bina, MGB, through the JV company, is confident of tapping into the potential of these future projects. Equipped with the IBS system and precast concrete technology, the establishment of the plant further positions the JV entity as a preferred partner to MGB’s future construction projects.
“We believe that the implementation of this IBS system will improve MGB’s competitiveness in the construction industry. For the first two years, construction costs are expected to remain the same compared to the cost of current construction methods which include transportation costs. Construction cost savings will occur if the cost of labour increases as seen historically over the past two years. For the planned Precast IBS system, Phase 1 is capable of producing approximately 2,000 apartment units per year,” concluded by Tan Sri Lim Hock San.
MGB is a construction company listed on the Bursa Main Board offering construction management, design-build and pre-construction planning services for projects of all sizes. SANY Group was incorporated in China in year 1989. As one of SANY Group’s core subsidiaries, Sany Heavy Industry Co Ltd (“SANY Heavy Industry”), was publicly listed on the Shanghai Stock Exchange on 3 July 2003. SANY Heavy Industry is a Chinese multinational heavy machinery manufacturing company headquartered in Changsha, Hunan Province. It is the sixth-largest heavy equipment manufacturer in the world, and the first in its industry in China to enter the FT Global 500 and the Forbes Global 2000 rankings. SANY Heavy Industry, supported by the strength of SANY Group in equipment manufacturing and the whole industry chain resources, has become a precast concrete expert in the industrialisation of the construction industry. Currently, Sany Heavy Industry is the largest provider for precast concrete equipment solutions in China, accounting for 50% of the market share.