SELANGOR: MGB Bhd, a construction and property development solutions provider and subsidiary of LBS Bina Group Bhd, has entered into a memorandum of understanding (MoU) with SANY Alameriah For Construction Co Ltd (SANY Alameriah) to develop properties in Saudi Arabia.
SANY Alameriah is a joint venture company incorporated in Saudi Arabia between SANY, the second-largest heavy equipment manufacturer in the world, and Alameriah, a renowned developer in Saudi Arabia. It is principally involved in general construction activities, real estate development, infrastructure, design and build, and manufacturing of precast concrete products.
Under the terms of the MoU, SANY Alameriah aims to appoint MGB to design and build up to 10,000 units of properties, with a total project value of approximately 2.5 billion SAR (RM2.9bil) under the Government Sakani Program in Saudi Arabia which will be completed in five years. In addition, SANY Alameriah intends to collaborate with MGB to operate a precast concrete factory located in the city of Jeddah which is envisioned to supply 1,000,000 m3 precast concrete products for the construction of the units in five years.
The signing of the agreement took place at LBS’ headquarters in Plaza Seri Setia, Petaling Jaya, Selangor. MGB executive vice-chairman Tan Sri Lim Hock San signed on behalf of MGB while SANY Alameriah was represented by its board chairman Bandar Mohammad Al Amre.
“The construction industry has progressively begun to embrace IBS Precast as the pathway towards attaining higher construction quality, improving productivity as well as greater efficiency. We look towards progressing leaps and bounds, driven by the use of our IBS Precast technology as the world enters 2023.
“Ultimately, we are pleased to have entered into an MoU with such a renowned developer and this marks a major milestone for us as we begin to tap into the Middle East market. MGB has much to contribute towards the construction industry in the Middle East and we are honoured to have been identified as a leading IBS Precast player to develop properties,” said Lim.
“Moving forward, IBS Precast is environmentally friendlier, which is in line with the promotion of green construction as outlined in the Construction Industry Transformation Plan (2021-2025) as a national agenda to transform the construction sector to be greener and cost-efficient. We have identified IBS Precast as a game-changer in the construction industry and we hope to continue to develop our knowledge and expertise in this area. MGB will continue to secure more contracts as we look to increase our order book, which includes further broadening our horizon in different markets,” he added.
The signing was witnessed by MGB group managing director Datuk Wira Joey Lim Hock Guan and chief executive officer Datuk Richard Lim and SANY Alameriah board member Tarek Amri.
The MoU will be effective from Jan 13 2023 for a period of 12 months unless terminated by either party or both parties enter into a Definitive Agreement.