ML Global signs MoU with Sany Construction for IBS precast products manufacturing

PETALING JAYA: ML Global Bhd, a subsidiary of LBS Bina Group Bhd, has signed a memorandum of understanding with Sany Construction Industry Development (M) Sdn Bhd to work together to manufacture Industrial Building System (IBS) precast products for building projects within the next six months.
The company's shares closed one sen higher to RM1.16 at the end of trading, with some 410,600 shares changing hands.It has a market capitalisation of RM425.24 million.
The move by ML Global is expected to help it improve its competitiveness in the construction industry. ML Global is confident of tapping into LBS Bina’s future developments, which have a potential gross development value of RM30 billion, with the establishment of the plant equipped with IBS system and precast concrete technology.
“We believe that the implementation of this IBS system will improve ML Global's competitiveness in the construction industry. For the first two years, construction costs are expected to remain the same compared to the cost of current construction methods which include transportation costs. Construction cost savings will occur if the cost of labour increases as seen historically over the past two years. For the planned Precast IBS system, Phase 1 is capable of producing approximately 2,000 apartment units per year,” ML Global Group Managing Director Tan Sri Lim Hock San said in a statement.
Sany is a locally incorporated company of Chinese group Sany Group Co Ltd. Sany Heavy Industry, a core subsidiary of the group, is the largest provider for precast concrete equipment solutions in China, accounting for 50% of the market share.
The MoU is valid for six months, in which time ML Global plans to take up a 51% stake in the joint venture and Sany Construction, the rest. The joint venture company is to have a paid up capital of RM4 million.