KUALA LUMPUR (Oct 14): Property developer Tanco Holdings Bhd (KL:TANCO) said it is forming an 80:20 joint venture with Menteri Besar Negeri Sembilan (Inc) (MBINS) to develop an industrial park in Port Dickson.
The park, provisionally named the Port Dickson Free Zone (PDFZ), will be developed on 575 acres of land currently owned by SD Guthrie Bhd (KL:SDG), formerly known as Sime Darby Plantation Bhd, said Tanco in a bourse filing on Monday.
The collaboration will focus on acquiring the land and executing the development, which is expected to include warehouses, factories and other infrastructure, subject to approval from relevant authorities.
"This proposed joint venture is expected to generate significant future earnings for the group and will also strengthen the group's presence within the property development industry in Negeri Sembilan," Tanco said.
It added that the industrial park would complement its proposed development of the smart AI container port project in Negeri Sembilan.
The port, which recently received approval from the Malaysian Marine Department, is planned on a 194-hectare site owned by Tanco. The project will feature a 1.8km jetty, a terminal and a container handling area spanning 809,300 sq metres.
On June 6, Tanco's 79%-owned subsidiary, Midports Holdings Sdn Bhd, signed a memorandum of understanding (MOU) with China’s CCCC Dredging (Group) Co Ltd to further advance the container port project.
Last week, Tanco signed another MOU with CCCC Dredging Southeast Asia Sdn Bhd, a subsidiary of CCCC Dredging, to act as the professional consultant for the design and engineering of the smart AI container port.
Shares in Tanco closed two sen or 1.35% higher at RM1.50 on Monday, giving the company a market capitalisation of RM3.26 billion. Year-to-date, the stock has surged 154.24%.