Tiong Seng enters $14.5 million joint venture with two Japanese firms

Tiong Seng chief executive Pek Lian Guan, Geostr Corporation president Minori Kuriyama and Marubeni-Itochu Steel managing director Yoshinori Kubo. Locally-listed Tiong Seng Holdings has joined forces with two Japanese companies to
Tiong Seng chief executive Pek Lian Guan, Geostr Corporation president Minori Kuriyama and Marubeni-Itochu Steel managing director Yoshinori Kubo. Locally-listed Tiong Seng Holdings has joined forces with two Japanese companies to meet the demand for infrastructure in Singapore and Malaysia. -- PHOTO: FINANCIALPR

SINGAPORE - Locally-listed Tiong Seng Holdings has joined forces with two Japanese companies to meet the demand for infrastructure in Singapore and Malaysia.

The construction firm will invest $6.4 million, through its wholly-owned subsidiary Robin Village International, into a joint venture with Geostr Corporation and Marubeni-Itochu Steel (MISP), the Singapore subsidiary of the Japanese firm.

Geostr Corporation is a unit of steel giant Nippon Steel & Sumitomo Metal Corporation.

Tiong Seng will own 44 per cent of the $14.5 million joint venture, while Geostr will have a 51 per cent stake. The remaining 5 per cent will be held by MISP.

Tiong Seng said on Wednesday that the venture will manufacture and supply precast tunnel segments to Singapore and Malaysia, and will set up its manufacturing facility on Robin Village's existing precast site in Iskandar, Malaysia.

Precasting involves molding concrete parts before transporting them to site for assembly, instead of pouring and casting concrete at the site. This method lowers costs and improves quality control.

Tiong Seng chief executive Pek Lian Guan said: "We strive to harness Geostr's expertise and market leadership in precast tunnel segments to complement our existing suite of precast capabilities."

Geostr has over 40 years of experience in making precast tunnels in Japan, where it accounts for more than 40 per cent of production volume for such works. It is also the largest producer of concrete sheet piles in Japan.

In an email statement, Tiong Seng also said MISP will provide "strategic business services" to the joint venture, including business management and logistical support.

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