Malaysia's MGB wins deal to build 10,000 homes in Jeddah

Saudi-based Sany Alameriah For Construction Company has signed up MGB Berhad - a leading Malaysian construction and property development company and a subsidiary of LBS Bina Group - to design and build 10,000 residential units in Jeddah.

The SR2.5 billion ($665 million) project, which is being developed as part of Sakani housing programme, is due for competion in five years.

Sany Alameriah is a joint venture 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.

In addition to the housing units, the Saudi group also is looking at a collaboration with MGB to operate a precast concrete factory in Jeddah capable of supplying 1,000,000 cu m precast concrete products for the construction of the residential units.

The signing of the memorandum of understanding (MOU) was at the LBS headquarters in Plaza Seri Setia, Petaling Jaya.

MGB Executive Vice-chairman Tan Sri Lim Hock San signed the agreement with Sany Alameriah Chairman Bandar Mohammad Al Amre at a key event held at the LBS headquarters in Petaling Jaya in the presence of MGB Group officials Managing Director Datuk Joey Lim Hock Guan and CEO Datuk Richard Lim as well as SA board member Tarek Amri.

Hock San pointed out that the construction industry had 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," he noted.

"The MoU with such a renowned developer marks a major milestone for us as we begin to tap into the Middle East market," he added.