KUCHING: Property developer Ibraco Bhd has diversified further into the building and construction supply chain with its latest investment in an asphalt mixing plant here.
The plant is set to begin commissioning this month, following the commercial operation of the group’s mild steel cement lined (MSCL) pipe manufacturing plant in Demak Laut Industrial Park in the third quarter of 2024.
The MSCL pipe plant has an annual production capacity of 30,000 tonnes of MSCL pipes.
Meanwhile, Ibraco’s subsidiary, Ibraco Ascent Sdn Bhd, successfully completed its first delivery of MSCL pipes for use in the development of water infrastructure within the billion-ringgit Kuching Urban Transportation System (KUTS) project.
In November 2023, Ibraco and its joint-venture (JV) partners, China Railway Engineering Corp (M) Sdn Bhd and Nanyang Tunnel Engineering Sdn Bhd, were awarded a RM568.6mil contract for the construction and completion of infrastructure works on the Blue Line-Package 1 from Rembus (Samarahan) to Stutong (Kuching) of the KUTS project.
The contract is expected to be completed by Dec 31, 2025 (Stage 1), and June 30, 2026 (Stage 1A).
Ibraco’s first venture into the building and construction supply chain was its investment in a ready-mixed concrete plant via JV firm, Ibraco KPP Concrete Sdn Bhd.
The JV is 70%-owned by Ibraco’s wholly-owned subsidiary, Ibraco Construction Sdn Bhd, and 30% by Kemunting Premix Plant Sdn Bhd.
According to Ibraco group managing director Datuk Chew Chiaw Han, the setting up of its own building and construction supply chain aimed to meet the group’s internal needs while ensuing quality control over the supply of various construction materials.
In addition, the sales of these materials to external parties created a new revenue stream, enhancing the group’s long-term earnings growth, he said.
For the first nine months of 2024, Ibraco posted group net profit of RM26.8mil with revenue of RM326.4mil.
Meanwhile, Ibraco’s construction arm in July 2023 secured a major infrastructure contract worth RM529.84mil from the Sarawak Public Works Department.
The project involves the construction and completion of the Sarawak Second Trunk Road (Package A1-A: proposed construction and completion of the new Batang Samarahan bridge and the 9km new four-lane dual carriage road JKR R5 Standard from Batang Samarahan to Batang Sadong), Samarahan Division.
The 42-month contract is expected to be delivered by Feb 2, 2027.
Ibraco is also involved in a major turnkey contract in the northern region under Sarawak Wager Supply Grid Programme - Stressed Areas, which is due for completion this year.
The group’s second quarry reserve at Gunung Sinmajau, Serian Division, is expected to commence operations in first half of 2025.
Chew said the new quarry site, which will have an annual production capacity of 1.2 million tonnes of limestone, is currently under site preparation works. Ibraco was granted the licence for the new quarry in partnership with Kebajikan Anak-Anak Yatim Sarawak Charitable Trust.
The group operates a quarry plant at Pulau Salak in Kuching’s Santubong delta, with an annual capacity of 600,000 tonnes.