TAN Chong Motor Holdings Bhd (TCM) is partnering with Vietnamese company An Tam Construction and Trading Co Ltd in a move to expand its construction business beyond Malaysia.
TCM said in a March 13 filing with Bursa Malaysia that its indirect wholly-owned subsidiary Tan Chong Construction (Labuan) Pte Ltd had entered into a joint-venture (JV) agreement with An Tam to form Tan Chong Antaco Construction Co Ltd.
Tan Chong Construction will own 60% of the Vietnam-based company.
According to TCM, the JV is meant to secure design and construction contacts as well as manage projects. The company, said TCM, would have an initial charter capital of VND22 bil (RM4 mil), financed by both companies through internally generated funds.
TCM said the JV was designed to complement the expansion of the group’s motor business in the region, particularly Vietnam. This would require TCM to construct, among others, new warehouses as well as expand assembly plants.
“The management believes that a collaboration and sharing of resources between TCM and Antaco Vietnam will benefit both parties and is expected to elevate TCM’s business to the next level in future,” TCM said.
TCM’s shares closed at RM1.10, up 2 sen, with 399,000 shares changing hands. – March 13, 2020
