New high for Dagang NeXchange Bhd
KUALA LUMPUR: The units of Sunsuria Bhd
and China's CITIC Ltd have set up a joint-venture company to undertake undertake construction projects in Malaysia.
Sunsuria's unit Sunsuria Builders Sdn Bhd had on Wednesday signed a partnership with Citicc International Investment Ltd where the former will hold a 49% stake and the latter 51%.
“The partnership enables Sunsuria to leverage on the Chinese state-owned conglomerate’s strong financial strength and proven track record in construction to take on larger-scale projects,” it said.
Under the JV, Sunsuria will be CITIC Construction’s sole partner for all construction works in Malaysia.
As for Sunsuria, it will grant the JV a right of first refusal to construction works projects not arising from the property development business carried out or undertaken by Sunsuria.
Recently, Sunsuria had acquired a construction subsidiary company Prosperspan Construction Sdn Bhd, now known as Sunsuria Asas Sdn Bhd.
Sunsuria said Sunsuria Asas will provide local support to this JV as it seeks to boost its capabilities and margins for construction-related businesses.
CITIC Construction chairman Chen Xiaojia said Malaysia was a very high-potential market and plays an important role in China's One Belt One Road initiative.
“We believe that this joint venture will enable both parties to maximize our strengths towards great achievements and contribute significantly to Malaysia's economic transformation,” Chen said.
Sunsuria executive chairman Datuk Ter Leong Yap said the JV “reflects our relentless pursuit for greater business expansion and sound financial growth”.
He said in CITIC Construction, Sunsuria has found a business partner who not only shares its commitment towards integrity and reliability in business, but one that boasts of vast experience and technical expertise, financial strength, and a strong support network.
Among CITIC Construction’s major projects include China’s iconic National Olympic Stadium (The Bird’s Nest), Royal Albert Dock project in the UK, Algeria’s East-to-West Expressway, Brazil Caniota thermal power plant, Myanmar multifunctional diesel engine plant, Belarus cement production lines, Uzbekistan potash fertiliser plant and large-scale housing projects in Africa and Venezuela.
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