MGB Bhd, a construction and property development solutions provider and subsidiary of LBS Bina Group Bhd, has signed a joint venture agreement with SANY Alameriah Industrial (SA), through its subsidiary MGB International for Industry (MGBI). SA is a branch of SANY Alameriah For Construction Co. Ltd. (JVA).
The signing of the joint venture agreement follows a Memorandum of Understanding signed earlier this year. The venue of the signing was in Riyadh, Kingdom of Saudi Arabia, and it was witnessed by investment assistant minister H.E Ibrahim Youssef Almubarak, and undersecretary of the Ministry of Municipal and Rural Affairs and Housing for Housing Supply and Real Estate Development, Abdulrahman Al-Taweel.
SA is a joint venture company between SANY, the second largest heavy equipment manufacturer in the world, and Alameriah, a renowned developer in the Kingdom of Saudi Arabia. Alameriah is involved in general construction activities, real estate development, infrastructure, design and build, and manufacturing of precast concrete products.
Under the joint venture agreement, MGBI will operate SA’s precast concrete factory located in Jeddah, the Kingdom of Saudi Arabia. The factory has a production capacity of up to 810,000 m3 for three years. SA will secure contracts for 270,000 m3 of precast concrete products within three years, with a minimum order of 90,000 m3 during the first year.
This joint venture presents MGB’s first international project in the Kingdom’s property development and housing sector. The Kingdom has undertaken substantial reforms to increase accessibility to affordable, quality, safe, and well-located housing, in line with the Saudi Housing Programme introduced in 2018 and the Kingdom’s Vision 2030. This provides an advantage for MGB, as it specializes in mass construction of affordable housing, potentially securing new contracts in the future.
LBS executive chairman Tan Sri Ir. Lim Hock San expressed excitement about the expansion of operations into the Kingdom of Saudi Arabia. The partnership with SANY Group in Malaysia for the manufacturing of precast concrete products has been successful, and they are looking forward to further strengthening their partnership by working together in Saudi Arabia.
MGB has completed more than 6,000 homes using their IBS (Industrialized Building System) technology since 2018. They are expected to complete an additional 4,000 homes using IBS technology over the next few months. This expansion adds to their existing portfolio as an experienced precast concrete products manufacturer and main contractor specializing in affordable housing.
Credit: The Star : News Feed
