PRG to partner China firm for construction jobs

PETALING JAYA: PRG Holdings Bhd has entered into a strategic cooperation agreement with China’s Jiangsu Provincial Construction Group Co Ltd (JPC) to jointly undertake infrastructure, property, and construction projects in Malaysia and internationally.

JPC is involved in construction, infrastructure development and property development. It is a 55% owned subsidiary of Greenland Group, which was ranked 268th in Fortune Global 500 back in 2014 and was the 40th mainland Chinese enterprise on the list.

Under the agreement, PRG will source for infrastructure, construction, project financing, and property development projects, while JPC will invest, finance, and be responsible to perform, build, complete, and comply with the terms and conditions of projects/contract works procured by PRG.

PRG group managing director Datuk Lua Choon Hann said the agreement is in line with its business model to form joint ventures with strategic partners that are experienced in property development and construction projects, fitting into the group’s strategies and business capabilities. “This corporate exercise will also provide a good opportunity to diversify the revenue stream of the group.”

JPC has 4,500 employees and works in more than 30 countries around the world, with an annual output value of nearly 30 billion renminbi (RM19 billion) and total assets of 15 billion renminbi (RM10 billion). It has completed more than 10,000 construction projects, with an estimated 100 million sq m of construction and 10 million sq m of real estate development.

PRG shares rose one sen to close at RM1.02 yesterday on some 72,000 units traded, bringing it a market capitalisation of RM304.83 million.