Sunway Concrete Products (S) Pte Ltd (“SCPS”), an indirect wholly owned subsidiary of Sunway Construction Group Berhad (SunCon) together with its joint venture partner HL Building Materials Pte Ltd, a subsidiary of Hong Leong Asia Ltd, have successfully won the bid for the lease of land (the “Land”) for the development of the Integrated Construction and Prefabrication Hub (“ICPH”) from the Building and Construction Authority of Singapore (“BCA”).
This piece of Land, awarded by BCA on 27 July 2018, is located at Pulau Punggol Barat and is approximately 38,421.8 square meters in size. The lease term for the Land is 30 years starting from July 2018.
The total consideration for the Land is approximately SGD25.7 million comprising the land price and administrative fees. The said consideration will be borne by the joint venture parties proportionately.
SCPS plans to build an integrated precast plant on the Land fitted with state of the art technology. The plant will be a fully mechanized plant with an expected production capacity of 100,000 cubic meters of concrete products per year. The construction of the plant is expected to commence in August 2018, subject to the approval of the relevant authorities.
SunCon believes that the investment in the lease of the Land and the construction of the mechanized precast plant will upscale its precast facility to a fully-mechanised facility and further improve the productivity as well as reduce the reliance on foreign workers.
The investment also ensures SunCon’s precast division’s presence in Singapore is aligned with the Singapore Government’s policy quest for further mechanisation to improve productivity.
SCPS expects to fund the overall investment by a combination of internal funds and bank borrowings.
The investment is expected to contribute positively to the future earnings of SunCon Group upon completion of the investment in 3 years’ time.
