Does Sunsuria and China’s CITIC JV Indicate Creation of More Construction Jobs in Malaysia?

June 30, 20178:03 am465 views

The units of Sunsuria Bhd and China’s CITIC Ltd have set up a joint-venture company to undertake construction projects in Malaysia, The Star reports.

Sunsuria’s unit Sunsuria Builders Sdn Bhd and Citicc International Investment Ltd, have entered into a partnership wherein the former would hold 49% stake and the latter 51%. This partnership will enable Sunsuria to leverage on the Chinese state-owned conglomerate’s strong financial strength and proven track record in construction to take on larger-scale projects.

As per the JV, Sunsuria will be CITIC Construction’s sole partner for all construction works in Malaysia. This will grant CITIC a right of first refusal to construction works projects not arising from the property development business carried out or undertaken by Sunsuria.

Recently, Sunsuria acquired a construction subsidiary company Prosperspan Construction Sdn Bhd, now known as Sunsuria Asas Sdn Bhd. This new acquisition will be responsible for providing local support to the JV, as it seeks to boost its capabilities and margins on the construction business.

See: Construction Industry Players in Malaysia Want EMC Scrapped

CITIC Construction chairman Chen Xiaojia believes this joint venture will enable both parties to maximize its strengths towards greater achievements and contribute significantly to Malaysia’s economic transformation. He further said, “Malaysia was a very high-potential market and plays an important role in China’s One Belt One Road initiative.”

Sunsuria executive chairman Datuk Ter Leong Yap said, “In CITIC Construction, Sunsuria has found a business partner who not only shares its commitment towards integrity and reliability in business, but one that boasts of vast experience and technical expertise, financial strength, and a strong support network.”

Some of CITIC’s major construction projects include China’s iconic National Olympic Stadium (The Bird’s Nest), Royal Albert Dock project in the UK, Algeria’s East-to-West Expressway, Brazil Caniota thermal power plant, Myanmar multifunctional diesel engine plant, Belarus cement production lines, Uzbekistan potash fertiliser plant and large-scale housing projects in Africa and Venezuela.

Also read: What it’s like to be a Woman in the Construction Sector?

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