MGB Berhad (MGB), a construction and property development solutions provider and subsidiary of LBS Bina Group Berhad, Malaysia announced that it has entered into a Memorandum of Understanding (MOU) with SANY Alameriah For Construction Co., Ltd. (SA).
SA is a joint venture company incorporated in the Kingdom of 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, SA 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 (RM2.9 billion) under the Government Sakani Program (“Construction of Units”) in the Kingdom of Saudi Arabia which shall be completed in five (5) years.
In addition, SA 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 (5) 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 SA was represented by the Chairman of the board of SA, Mr Bandar Mohammad Al Amre. The signing was witnessed by MGB Group Managing Director, Datuk Wira Joey Lim Hock Guan, MGB Chief Executive Officer, Datuk Richard Lim and SA board member, Mr Tarek Amri.
The MOU will be effective from 13th January 2023 for a period of twelve (12) months unless terminated by either party or both parties enter into a Definitive Agreement.
MGB Executive Vice Chairman, Tan Sri Lim Hock San said, “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.
