Tanco Holdings Bhd is entering the concrete products manufacturing business through a joint venture with Hong Kong-based King Well Holdings Ltd (KWHL).
In a Bursa Malaysia filing on Monday, Tanco said its indirect wholly-owned subsidiary, Tanco Precast Industries Sdn Bhd, signed a joint venture and shareholders agreement with KWHL to manufacture, supply and sell concrete-related products in Malaysia.
Under the agreement, a new joint venture company will be formed, with Tanco holding a 51% stake and KWHL owning the remaining 49%.
KWHL is a Hong Kong-incorporated company whose shareholders and board members have experience in the concrete manufacturing industry in China.
The new venture plans to set up its first factory on land owned by Tanco and its subsidiaries, while KWHL will lead the factory setup and manufacturing operations.
Tanco said the partnership will help strengthen its construction materials supply chain and support its future property development projects, while also tapping into demand for concrete products in Malaysia.
The agreement is subject to feasibility assessments and approvals from relevant Malaysian authorities.
Tanco shares closed one sen higher at RM1.67 on Monday, giving the group a market capitalisation of RM10.24 billion.
