KUALA LUMPUR (Nov 5): Tanco Holdings Bhd's (KL:TANCO) joint venture with a unit of China Nuclear Industry Huaxing Construction Co Ltd has secured a RM700 million contract to build an industrial warehouse complex in Klang, Selangor.
In a bourse filing on Thursday, Tanco said the joint venture between its wholly-owned subsidiary, Tanco Builders Sdn Bhd, and CNECC Engineering (Malaysia) Sdn Bhd accepted a letter of award from Jaroses Partners Sdn Bhd for the project.
CNECC Engineering is principally involved in building construction and project management.
The contract covers the supply of labour, machinery, plant, materials and transport, as well as the construction, testing, commissioning, handover and maintenance of the project.
The consortium will split the work, with Tanco Builders providing coordination and management services, while CNECC Engineering undertaking the construction works and bear the project's costs, liabilities and execution risks.
Tanco’s profitability in the project is limited, as it is entitled only to an agreed fee under the consortium agreement. However, the group did not disclose the amount of the fee.
Construction commenced today and is set to be completed in 24 months by November 2028.
The warehouse project at Lebuh Raya Pulau Indah comprises two single-storey ambient warehouses, a cold storage warehouse, an office building, a canteen and surau, along with supporting infrastructure, such as a 33kV electricity substation, a pump house, a guard house and a sewerage treatment plant.
“We are not looking at contract size alone. What matters is having the right partner, clearly defined responsibilities, and a commercial arrangement that optimises our financial exposure,” Tanco managing director Datuk Andrew Tan Jun Suan said in a separate statement.
The consortium between Tanco Builders and CNECC Engineering was formed in December 2025, to combine resources in order to bid for logistics warehouse and mega-storage construction projects in Malaysia.
Tanco Builders is tasked with leading negotiations, stakeholder coordination and project management. CNECC Engineering would provide technical expertise and resources covering value engineering, procurement, construction and commissioning, and may provide corporate guarantees for project delivery.
Tanco shares close unchanged at 15 sen on Thursday, valuing the company at RM920.1 million. The counter has fallen over 80% in the past one year.