- POSTED: 11 Jun 2014 20:31
- UPDATED: 12 Jun 2014 04:56
Tiong Seng Holdings announces a joint venture with two Japanese firms, Geostr and Marubeni, to manufacture precast tunnel segments.
SINGAPORE: Mainboard-listed Tiong Seng Holdings is joining hands with two Japanese firms to manufacture and supply precast tunnel segments to the markets in Singapore and Malaysia.
The total investment by the joint venture company is expected to be S$14.5 million.
Tiong Seng Holdings is looking to grow its business as Singapore expands its MRT network and Malaysia develops its infrastructure. It was recently awarded a contract to construct the Great World Station and tunnels for the upcoming Thomson Line.
Tiong Seng says the joint venture will improve its outreach to the construction industry.
"Geostr is a market leader in precast tunnels segment in Japan, with more than 40 per cent of the market share. We are privileged to be their joint venture partner together with Marubeni. With announcement of the MRT expansion plan, we see this as a good investment to grow our business," said Pek Lian Guan, the CEO of Tiong Seng Holdings.
The agreement will be Geostr's first business partnership outside of Japan. Geostr is a subsidiary of Nippon Steel & Sumitomo Metal Corporation.