CITIC Construction is wholly owned subsidiary of Hong Kong-listed CITIC Ltd, a Fortune Global 500 company, with assets of over HK$7.24 trillion (RM3.99 trillion).
Sunsuria told Bursa Malaysia that the partnership will enable it to leverage on the Chinese state-owned conglomerate’s strong financial strength and proven track record in construction to take on larger-scale projects.
They will form a joint-venture company (JVCo) in an exclusive partnership arrangement, whereby Sunsuria will be CITIC Construction’s sole partner for all construction works in Malaysia.
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.
A shareholder agreement was signed between Sunsuria’s wholly owned subsidiary Sunsuria Builders Sdn Bhd and Citicc International. CITIC will hold a 51% stake in the JVCo, with Sunsuria Builders holding the remaining 49%.
CITIC Construction is one of the 100 largest construction companies in the world and has been ranked among the Fortune Global 500 companies since 2009. Its revenue stood at HK$380.8 billion (RM209.4 billion) as of Dec 31, 2016.
It offers a full suite of services, including financial service agencies, consulting agencies on planning and design, construction companies, logistic providers, equipment and material providers and operation and maintenance service providers.
CITIC Construction’s major projects include China’s iconic National Olympic Stadium (The Bird’s Nest), the Royal Albert Dock project in the UK, Algeria’s East-to-West Expressway, Brazil’s Caniota thermal power plant, Myanmar’s multifunctional diesel engine plant, Belarus’ cement production lines, Uzbekistan’s potash fertiliser plant and large-scale housing projects in Africa and Venezuela.
The proposed joint venture is expected to contribute positively to the future earnings of Sunsuria Group.
— THE SUN