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- The firm, CNECC Engineering (Malaysia) Sdn Bhd (CEMSB), is engaged in building construction and project management, with its ultimate parent company being China Nuclear Industry HuaXing Construction Company Ltd.
KUALA LUMPUR (Dec 23): Tanco Holdings Bhd (KL:TANCO) said it has entered into a joint-venture deal with a China-backed construction firm to jointly bid for logistics warehouse and mega-storage construction projects.
The firm, CNECC Engineering (Malaysia) Sdn Bhd (CEMSB), is engaged in building construction and project management, with its ultimate parent company being China Nuclear Industry HuaXing Construction Company Ltd.
In a filing with Bursa Malaysia on Tuesday, Tanco said the agreement, entered into via its wholly-owned subsidiary Tanco Builders Sdn Bhd (TBSB), aims to leverage the strengths of both parties.
TBSB will focus on contract negotiation, project management and local coordination, while CEMSB will provide technical expertise in value engineering, procurement, construction and operations, including corporate guarantees for project completion.
Under the agreement, the parties will negotiate project selections, contract sums, and the apportionment of costs, revenues and profits. Both TBSB and CEMSB retain autonomy in decision-making, with TBSB primarily responsible for fulfilling contracts with project owners.
Tanco said the joint venture is expected to support its strategy to expand its construction portfolio in Malaysia, tapping into the expertise and network of experienced partners to diversify the types of projects pursued.
Shares in Tanco closed two sen or 1.8% higher at RM1.15 on Tuesday, giving the company a market capitalisation of RM7.05 billion.
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