KUCHING: Sarawak Consolidated Industries Bhd (SCIB) is teaming up with Bintai Kinden Corporation Bhd to establish a strategic alliance for exploring business opportunities, securing of new projects and sharing of profits.
Both listed companies signed a memorandum of understanding (MoU) on the partnership on Feb 6.
SCIB is a civil engineering specialist and is also involved in the manufacturing of precast concrete products and industrial building system (IBS) products.
Bintai Kinden has over 40 years of specialist mechanical and electrical engineering and construction experience, with unique combination of extensive regional experience and local knowledge.
“The MoU is a preliminary step the parties are taking as they explore a working relationship and cooperation to combine skills, expertise, capabilities, experience and collective bid for projects in Malaysia, and to set out the principal terms of the arrangement between the parties,” both companies said in a press statement yesterday.
The parties wish to enter into a joint venture (JV) agreement under the existing wholly-owned subsidiary company of SCIB, namely SCIB Infraworks Sdn Bhd. SCIB will retain a 51% stake in the JV while Bintai Kinden will subscribe for the remaining 49%.
SCIB and Bintai Kinden shall be jointly responsible on the following:
- To contribute proportionate resources, skills and experience to complete the bidding process for, or securing the award of any projects as specified by the prospective clients;
- To comply with all terms, conditions, obligations and instructions which may be specified in all the bidding/award constituent documents, and
- Carry out and complete the implementation of projects in accordance with its terms and conditions.
In welcoming the strategic alliance, SCIB group managing director Rosland Othman said both parties can leverage on each other’s strength and expertise that add value to any projects they are involved in together.
“SCIB’s manufacturing arm, the leading precast concrete and industrialised building system products’ manufacturer in East Malaysia, is already supporting our construction arm in projects throughout the country.
“Our focus on small-to-mid-sized construction, healthcare, educational and utility facilities as well as rural infrastructure projects together with investment in technology such as 3D printing and automation are also strengths that we can leverage on for the future JV projects,” he added.
SCIB executive director Ku Chong Hong said: “This JV brings together two teams with core expertise and knowledge in construction and engineering that will give an edge to projects undertaken together.
“We expect to see more infrastructure projects in the pipeline as Malaysia’s construction sector gains momentum on the back of economic growth.”
Bintai Kinden executive director Azri Azerai said his company looks forward to a fruitful partnership with SCIB to seek opportunities together across the country.
“Bintai Kinden’s core expertise is M&E services, and as a multi-disciplined building and industrial service engineers and specialists, we work in all the major market sectors, from commercial buildings to industrial complexes. We design, install and commission systems that include the full range of engineering services which we believe can complement the JV,” added Azri.
