KUALA LUMPUR – Dec 23: Tanco Holdings Bhd (KL:TANCO) has entered a strategic joint venture with China-backed construction specialist CNECC Engineering (Malaysia) Sdn Bhd (CEMSB) to pursue large-scale logistics warehouse and mega-storage construction projects across Malaysia.
The collaboration is structured through Tanco’s wholly-owned subsidiary, Tanco Builders Sdn Bhd (TBSB), combining local project management expertise with CEMSB’s technical and engineering capabilities. CEMSB operates under the ultimate parent company China Nuclear Industry HuaXing Construction Company Ltd, bringing international engineering experience to the partnership.
Under the joint venture, TBSB will manage contract negotiation, project coordination, and local stakeholder engagement, while CEMSB contributes value engineering, procurement, construction execution, operational oversight, and corporate guarantees for project completion. Both parties retain decision-making autonomy, with TBSB primarily responsible for fulfilling client contracts.
The agreement allows for collaborative negotiation on project selection, contract terms, and revenue sharing, enabling Tanco to broaden its construction portfolio while diversifying into high-demand logistics and industrial infrastructure sectors. This move positions the group to capture emerging opportunities in industrial land development in Selangor, factory construction in Puchong, and related commercial property projects across KL and the Subang area.
Tanco’s shares closed two sen higher at RM1.15, giving the company a market capitalisation of RM7.05 billion, reflecting investor confidence in its growth strategy.
Malaysia