Koon inks S$53.73mn precast components projects

The deal will supply precast components for the construction of new HDB flats and a private industrial development project.

Koon Holdings Limited, (“Koon”), one of Singapore’s leading infrastructure construction and precast specialists, is pleased to announce that it has secured new precast projects with an aggregate contract value of S$53.73 million.

The HDB and private industrial development projects were secured through the Group’s subsidiaries - Econ Precast Pte Ltd (“Econ”) and Contech Precast Pte Ltd (“Contech”). Under the agreements, Econ and Contech will supply precast components over a contract period of 7 to 18 months.

Both Econ and Contech have the highest license (L6) from the Building and Construction Authority of Singapore (“BCA”) which allows them to bid for precast concrete works in Singapore of unlimited contract value.

Commenting on the new precast projects secured, Mr Tan Thiam Hee, Managing Director and Chief Executive Officer of Koon said, “Our foray into this fast-growing niche market is further validated as we increase our precast order book with these sizable precast projects.

HDB recently initiated the largest supply of flats ever offered in a single launch with another 4,200 build-to-order flats to be launched in November 2011. In line with the strong demand for public housing projects, precast products are gaining wider adoption as they simplify on-site construction process, provide better quality control and higher cost efficiencies.

With the Singapore government’s initiatives to increase productivity in construction-related activities, there is also a progressive adoption of precast products in private sector projects.Koon Holdings Limited

Riding on the precast demand, our established precast subsidiaries are in a very strong position to meet the increased demand with our comprehensive range of precast products and manufacturing capabilities in our three manufacturing yards.”

With the inclusion of these contracts, to date, Koon’s Precast order book (excluding the Construction division) stands at approximately S$103.40 million. 

Notably, in April 2011, the Group secured a S$16.3 million contract to design and supply precast components for public housing projects. Since its foray into the precast market in March 2010, the Group has progressively secured new projects under its precast division, according to a Koon report.

Mr Tan concluded, “Our diversified business model will continue to set the pace for future growth while at the same time, we remain focused on creating synergies between our complementary business units especially between our Infrastructure Construction and Precast divisions.”