A unit of China Haida, CHD Engineering and Trading, has entered into a joint venture (JV) agreement with K-United Builder (KUB) to collaborate to supply and install aluminium products for projects in Singapore and Malaysia.

 

The first project is for a commercial building in Johor, Malaysia with a contract value of S$1.68 million. Work will start on Aug 2 this year and is slated for completion on Dec 1, 2022. The scope of work is to supply aluminium cladding and roof work for a commercial building which is being erected in Iskandar Puteri, Johor.

 

Meanwhile, the other projects are in Singapore - namely, three terrace houses at Lorong Salleh and two semi-detached houses at Jalan Kechubong - with a total contract value of S$0.75 million. The scope of work is to supply and install the aluminium cladding products for the five houses which are being constructed. Work is expected to start on May 25 this year and will be completed on Sept 30, 2022.

 

The net profits generated from the projects are to be split equally between CHD and KUB.

 

China Haida highlighted that the proposed JV is in line with the group' s strategic plans to expand its aluminium products to Singapore and Southeast Asia so as to diversify its geographical concentration risk.

 

It added: " The projects would enable the company to generate additional income sources which will aid the group in its turnaround business plans to revitalise its existing aluminium products business."

 

China Haida also said that the JV will be funded through the company' s internal resources, and that it plans to undertake fund-raising activities in due course.

 

The company is " cautiously optimistic" that the JV will contribute to the group' s earnings for the financial year ending Dec, 31, 2021.