Tiong Seng to build third precast plant in Asia

$10 million invested in Myanmar JV.

Robin Village Development (Pte) Ltd (Robin Village), the wholly-owned subsidiary of Mainboard-listed construction group and property developer, Tiong Seng Holdings Limited (Tiong Seng) has entered into a joint venture agreement (JVA) with High Tech Concrete Technology Co., Ltd (HTCT) and Sin Mian Development Pte Ltd (“Sin Mian’’), to jointly set up a precast plant in Myanmar. HTCT is a wholly-owned subsidiary of Shwe Taung Development Co., Ltd (Shwe Taung), a construction giant and one of the most prominent conglomerates in Myanmar.

Under the terms of the JVA, Robin Village, HTCT and Sin Mian will establish a 30:55:15 joint venture company to set up and operate a precast plant to supply precast components to construction projects in Myanmar. The joint venture company will invest S$10.0 million in the precast plant, which will first supply precast components to a potential government affordable housing project. Robin Village will provide precast knowledge and expertise on an arm’s length basis for a consultancy fee and technology transfer fee, while HTCT will facilitate the growth of the business through the procurement of construction projects in Myanmar.

Sited on a 50,000 sqm piece of land, the precast plant will be constructed in two phases, and will potentially serve building projects in Myanmar, including but not limited to Shwe Taung’s projects. Construction of Phase 1 is expected to commence in the 4th quarter of 2013 and production is targeted to start in the 2nd quarter of 2014. Construction of Phase 2 is targeted to commence in the 3rd quarter of 2014 and production is expected to begin in the 1st quarter of 2015. Each phase of the precast plant has an annual capacity of 27,500 cubic meters.

The precast plant in Myanmar is the Group’s third in Asia. In May 2012, the Group officially opened its Tiong Seng Prefab Hub, the first automated precast manufacturing facility in Singapore. Earlier this month, the Group also announced that it would construct a precast plant in Iskandar, Malaysia.

Commenting on the move into Myanmar, Mr Pek Lian Guan, CEO of Tiong Seng Holdings Limited said, “Precast forms a vital part of our growth strategy. With the Tiong Seng Prefab Hub at the core, our plan is to set up a network of precast plants in Asia. By supplying precast components to new markets, we are well-poised to tap on the opportunities in the construction sector, and potentially participate in overseas construction projects.

As the Myanmar government pushes for economic and social development, a key area of focus would be infrastructure and property development. There is a huge demand for affordable housing in Yangon and time is of the essence.”