24th November, 2016
KUALA LUMPUR (Nov 24): Benalec Holdings Bhd’s subsidiary Benalec Sdn Bhd has established a joint venture (JV) company with Ceteau Malaysia Sdn Bhd with the intentions of carrying out the business of installing geo-technical prefabricated vertical drains (PVD).
In a statement today, Benalec said the PVD would facilitate Benalec’s projects in Tanjung Piai Maritime Industrial Park (TPMIP) and Pengerang Maritime Industrial Park (PMIP) in Johor.
Benalec will hold a 51% stake in the JV company, which will be named Benalec CeTeau Asia Sdn Bhd, while Ceteau Malaysia will hold the remaining 49%.
The JV will allow Benalec to forge an alliance with CeTeau which will enable the company to derive cost benefits from its own soil improvement requirements at both its flagship projects.
CeTeau is part of a reputable group based in the Netherlands with vast experience in geosynthetic manufacturing trading and construction since 1985.
The PVD method is primarily applied to shorten the settlement period of soft, compressible clay/soil which will in turn reduce the construction period of a project and reduce post-construction settlement.
As such, a strong foundation ready for construction would be achieved and this is essential for all of Benalec’s land reclamation projects.
Combining the strength of both companies, the JV will have a combination of expertise where Benalec provides integrated marine construction solutions in the areas of land reclamation and coastal protection along with CeTeau’s specialist capabilities in the areas of advanced ground improvement technologies and specialised geosynthetic environmental techniques.
“Benalec’s two flagship industrial park projects in southern Johor, TPMIP and PMIP will involve the reclamation of over 5,000 acres of sea fronting land and will require the installation of PVD as the ground improvement method.
“With this JV, Benalec will derive cost benefits from our own soil improvement requirements; while at the same time generate new revenue streams by vertically integrating other synergistic business areas which are within our core competencies,” Benalec executive director Kenneth Chin said in a statement today.
“To begin with, the PVD machines for the use of this JV will be deployed immediately to Benalec’s TPMIP project.
“Moving forward, the JV aims to offer its services to other large land reclamation projects that are ongoing around peninsular Malaysia, particularly in Johor, Penang, Melaka and Kuantan,” added Chin.
Benalec shares closed unchanged at 36 sen today, for a market capitalisation of RM287.68 million.