In a bid to expand in the industrialised building system (IBS) segment, ML Global Bhd has formed a joint venture (JV) with Sany Construction Industry Development (M) Sdn Bhd, with an initial investment of up to RM40 million in the first phase, reported The Star.
ML Global is 55.3 percent owned by LBS Bina Group Bhd, while Sany Construction is a unit of China-based Sany Group Co Ltd, which is the world’s sixth biggest heavy equipment manufacturer.
The 51:49 JV between ML Global and Sany Construction will see the development of an IBS plant in Nilai, Negeri Sembilan.
The completion of the first phase of the IBS solution will enable ML Global to build around 2,000 apartments annually, effectively reducing the company’s reliance on manual labour.
“We believe that the implementation of this IBS system will improve ML Global’s competitiveness in the construction industry,” said Tan Sri Lim Hock San, group managing director of ML Global.
“While the construction costs under the IBS system are expected to remain the same compared to conventional construction methods for the first two years, cost savings will occur if labour cost increases as seen historically over the past two years.”
Lim revealed that the JV’s first project will be LBS Bina’s SkyLake Residence in Puchong. The two-block serviced apartment project will feature 746 units.
Meanwhile, Datuk Richard Lim Lit Chek, executive director and chief executive officer of ML Global, expects the JV’s first IBS plant to start production by end-Q1 2018.
“Our precast IBS solutions will allow us to reduce approximately 15 percent of our construction workers…Not only that, a project’s construction period can be effectively reduced by 30 percent by using the IBS system,” he said.
And with 80 percent of ML Global’s construction jobs coming from LBS Bina, the JV’s IBS solutions will significantly benefit from its parent company’s RM115 billion-worth of property development, which is set to be rolled out over the next three years, he added.
Image sourced from The Star
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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