Tiong Seng

Tiong Seng: Grp has signed a jv agreement to set up a precast plant in Yangon, Myanmar. Tiong Seng will take a 30% equity stake in a co called High Tech Precast and is investing $10m in the plant. It will first supply precast components to a potential government affordable housing project. Tiong Seng’s plan is to set up a network of precast plants in Asia and has a total annual capacity of of 55,000 cubic metres when fully completed. Tiong Seng's existing precast plant in Tuas produces around 100,000 cubic metres a year, while its other plant in Iskandar Malaysia, which will be completed by 2015, will have an annual production capacity of 66,000 cubic metres. The first phase of construction for the Yangon plant is expected to begin in 4Q13, and production is targeted for 2Q14. Its second phase will start in 3Q14 and production in 1Q15. The plant will serve building projects in Myanmar, including that of Shwe Taung's projects. Looking positive, strongest order book amongst the SG contstruction co’s and seems to be the most aggressive to diversify regionally, esp in the precast segment.