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M'sian firms in talks to set up concrete plant in Saudi Arabia
Publication Date : 05-07-2012
A Malaysian consortium is in serious talks with a Saudi Arabia-based public listed cement company to jointly set up a precast concrete plant in Jeddah.
The consortium, which comprises Sarawak Consolidated Industries Bhd (SCIB) and other groups, is likely to take up a 30 per cent stake in the joint-venture (JV) company that will own the proposed 150 million ringgit (US$47.5 million) plant.
SCIB chairman Tan Sri Hamid Bugo confirmed with StarBiz that several rounds of negotiations had been held with Tabuk Cement Co on the proposed JV.
He said that under the proposal, SCIB, a major manufacturer and supplier of precast concrete products in Sarawak, would build the plant.
“SCIB has the expertise to build the plant. Our Malaysian group plans to take up a 30 per cent stake in the JV,” he added.
The plant's capacity will be several times bigger than SCIB's existing facility in Bintawa Industrial Estate in Kuching.
Hamid indicates that the deal could be finalised soon.
SCIB now supplies some 30 per cent of its output to Sarawak Corridor of Renewable Energy projects.
It manufactures about a dozen precast concrete products ranging from foundation piles to wall panel, hollowcore slabs, precast columns and beams, pre-stressed beams, spun and square piles.
The company is also involved in the manufacture and supply of components for industrialised building system.
While Tabuk Cement will own the majority stake in the project, Finnish Elematic the world's leading supplier of precast concrete machinery and equipment is tipped to take up 5 per cent equity interest.
Elematic is SCIB's technical and solution provider.
Tabuk Cement was formed in 1994. It is engaged in the production, wholesale, marketing, import and export of ordinary Portland cement, sulfate-resistant cement and pozzolana cement.
These are in addition to other cement-related products and derivates.
Hamid said the proposed plant would tap into the strong demand for hollowcore slabs, wall panels and other products in view of the robust construction industry in Saudi Arabia.