SUNSURIA JV WITH CHINA’S TRILLION DOLLAR CITIC GROUP

SUNSURIA JV WITH CHINA’S TRILLION DOLLAR CITIC GROUP

KUALA LUMPUR: In the latest move to expand its business, Sunsuria Builders Sdn Bhd (formerly known as Goodwill Atlas Sdn Bhd) (“SBSB”), a wholly owned subsidiary of Sunsuria Berhad (“Sunsuria”) has inked a milestone partnership with China’s Citicc International Investment Ltd (“CITIC”), a wholly owned subsidiary of CITIC Construction Co., Ltd (“CITIC Construction”) , which in turn is a tier one wholly owned subsidiary of CITIC Limited, a Fortune Global 500 company, with assets of over HK$7.24 trillion (RM3.99 trillion).

The partnership enables Sunsuria to leverage on the Chinese state-owned conglomerate’s strong financial strength and proven track record in construction to take on larger-scale projects.

Executed via a Shareholders’ Agreement (“SHA”), the two companies will form a jointventure company (“JVCo”) in an exclusive partnership arrangement. Sunsuria will be CITIC Construction’s sole partner for all construction works in Malaysia. Likewise, Sunsuria will reciprocate by granting the JVCo a right of first refusal to construction works projects not arising from the property development business carried out or undertaken by Sunsuria.

Under the agreement, CITIC will hold a 51% stake in the JVCo with SBSB holding the remaining 49%.

CITIC Construction, is one of the top 250 global contractors by international engineering and construction publication Engineering News Record.

Among CITIC Construction’s major projects include China’s iconic National Olympic Stadium (The Bird’s Nest), Royal Albert Dock project in the UK, Algeria’s East-to-West Expressway, Brazil Caniota Thermal Power Plant, Myanmar Multifunctional Diesel Engine Plant, Belarus Cement Production Lines, Uzbekistan Potash Fertiliser Plant and large-scale housing projects in Africa and Venezuela.

The announcement follows Sunsuria’s recent acquisition of construction subsidiary Prosperspan Construction Sdn Bhd, now known as Sunsuria Asas Sdn Bhd (“SASB”). While SASB will provide local support to this joint venture, both these moves reflect Sunsuria’s ambitions to enhance its capabilities and margins for construction-related businesses.

“Malaysia is recognized globally as a very high-potential market and plays an important role in China’s One Belt One Road initiative. Sunsuria is a reputable and well-known enterprise in Malaysia under Datuk Ter Leong Yap, a respected community leader. We believe that this joint venture will enable both parties to maximize our strengths towards great achievements and contribute significantly to Malaysia’s economic transformation,” said Mr. Chen Xiaojia, Chairman of CITIC Construction.

“This partnership reflects our relentless pursuit for greater business expansion and sound financial growth. In CITIC Construction , we have found a business partner who not only shares our commitment towards integrity and reliability in business, but one that boasts of vast experience and technical expertise, financial strength, and a strong support network,” said Sunsuria’s Executive Chairman Datuk Ter Leong Yap.

 

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