NILAI, March 16 — MGB Bhd, a subsidiary of LBS Bina Group Bhd, today opened its pioneer permanent Industrialised Building System (IBS) precast concrete plant here with an investment of RM40 million.
With a built-up area spanning 119,017 square feet, the plant will produce, market, sell and install a range of IBS components from precast concrete panels, concrete wall panels, concrete slabs to column and beams.
MGB group managing director Tan Sri Lim Hock San said the RM40 million investment reflects the company’s commitment to expand further into the local IBS market.
“In view of the government’s continuous promotion and encouragement to propel the adoption of IBS in both public and private projects, the IBS market is poised to depict a strong growth in coming years.
“Additionally, IBS is increasingly being recognised as a reliable method that improves product quality and reduces construction time, on-site labour costs and dependency on manual labour.
“According to recent figures by the Construction Industry Development Board, the private sector’s adoption of the IBS currently stands at an estimated 35 per cent, out of its 2020 target of 50 per cent,” he said in his speech at the opening of the IBS Concrete Plant, here, today.
The opening was officiated by Housing and Local Government Minister Zuraida Kamaruddin.
Lim said the plant would put MGB on a firmer footing to capitalise on the expected rising demand for IBS.
“We expect demand for IBS components to increase steadily with more builders looking at alternative methods to increase efficiency, quality and productivity amidst a subdued property market.
“We are confident that demand will increase further when the proposal to make IBS mandatory by 2020 is approved and comes into effect,” he added.
The IBS plant is a joint venture between MGB and Sany Construction Industry Development (M) Sdn Bhd, a subsidiary of China-based Sany Group Co Ltd.
Lim said, at the moment, production from the new plant, caters mainly to the company’s internal projects, mainly Kita@Cybersouth.
“When the plant begins operating at full capacity, we hope to expand our supply to government and external housing projects,” he said.
Meanwhile, Zuraida in her remarks said she hoped MGB can support the government’s initiative in respect of the National Housing Policy to develop more affordable houses for the people.
“With this plant being set up here in Nilai, I hope that you can also support government initiatives because under the National Affordable Housing Policy, we are moving towards a 100 per cent IBS construction.
“So, MGB will not just be using IBS facilities within the company, but also go externally to support government projects with regard to national affordable homes,” she added. — Bernama
