KUALA LUMPUR, TSA Group Bhd is making its foray into the granite quarrying industry through a strategic partnership with ABR Group Sdn Bhd, marking a significant diversification move for the company.
In a filing with Bursa Malaysia today, TSA Group said it had entered into a joint venture agreement with ABR Group to develop and operate a granite quarry located in Johor. The project, covering an area of approximately 150 acres, is expected to begin operations by the first quarter of 2026, subject to regulatory approvals.
The tie-up will see TSA holding a 60% stake in the joint venture company, with ABR Group retaining the remaining 40%. ABR, which owns the quarry land and possesses the necessary mining licenses, will contribute its operational expertise and local market network. TSA will provide capital investment and strategic oversight.
“The venture aligns with our long-term diversification strategy and allows us to tap into the construction materials segment, which continues to show robust demand driven by infrastructure and property development,” TSA Group said in a statement.
The initial capital expenditure for the project is estimated at RM35 million, which includes quarry development, equipment procurement, and environmental compliance measures.
TSA Group expects the quarry to produce an annual output of 1.2 million metric tonnes of granite aggregates once fully operational. The materials will primarily serve the southern Peninsular Malaysia market, with potential for exports to Singapore and other neighbouring countries.
Analysts view the move as a positive step in strengthening TSA’s earnings base.
“The partnership with ABR gives TSA immediate access to a new revenue stream with relatively quick ramp-up potential. With infrastructure projects such as the Johor-Singapore Rapid Transit System (RTS Link) and domestic housing demand driving aggregate consumption, this venture is timely,” said a construction sector analyst at MIDF Research.
TSA Group, previously focused on logistics and engineering solutions, has in recent years taken steps to broaden its business portfolio. This latest move into quarrying marks its first entry into the upstream construction supply chain.
The group said further details of the project timeline, financial projections, and operational plans would be announced in due course.
