KUALA LUMPUR: TH Heavy Engineering Bhd (THHE), a subsidiary of Urusharta Jamaah Sdn Bhd (UJSB), has partnered with MTD Capital Bhd (MTD) to secure an infrastructure project in the northern region of Penisular Malaysia.
Both parties have signed a memorandum of understanding (MoU) on December 7, 2021, to explore collaboration opportunities in the civil engineering and construction business, both locally and internationally.
Under the terms of the MoU, THHE and MTD would explore ways to collaborate and optimise the opportunities within the local civil engineering and construction business.
Both companies will jointly participate in various projects that have been announced by the federal government under the 12th Malaysia Plan, with an initial target order book of RM1 billion within the next few years.
Signing on THHE were members of the executive committee, Ahmad Yusof Mohamad and Mohd Khalid Mohamed.
At the same time, MTD was represented by the chief executive officer Imran Gulcharan Abdullah and construction division head Ahmad Tarmizi Ismail.
Also present to witness the signings were the chief executive officer of UJSB and board member of THHE, Hizamuddin Jamalluddin and the group executive chairman of MTD, Datuk Nik Fauzi Nik Hussein.
Ahmad Yusof said THHE's foray into the civil engineering and construction business was part of its long-term strategy to diversify its revenue stream.
"I am delighted to see close collaboration between THHE and MTD, which will strengthen the financial position of THHE in the future.
"This collaboration will also pave the way for THHE to submit a more credible and sustainable Regularisation Plan to its stakeholders," he said.
Nik Fauzi said the MoU marked a significant step in the relationship between MTD and THHE.
"MTD, with proven track records in the construction and completion of various infrastructure and civil engineering works, is therefore well suited to partner THHE. "
In addition, he said THHE stands to benefit from the collaboration by leveraging MTD's technical capabilities, particularly in completing high impact infrastructure projects.
MTD is one of the pioneers of highway construction in Malaysia.
To date, MTD has completed various infrastructure projects worth RM5.9 billion.
Some of the notable local infrastructure projects completed by MTD included the KL-Karak Highway, East Coast Expressway (Phase One and part of Phase Two), viaduct works for MRT Line I (Package V7) and MRT Line II (Package V208C) and Penang Second Bridge Project.
MTD had also completed the South Luzon Expressway, and major road works for the New Clark City in the Philippines.