Soilbuild Construction Group has agreed to acquire a 70 percent stake in a Singapore- incorporated firm involved in the business of prefabricated pre-finished volumetric construction (PPVC), revealed an SGX filing on Monday (12 June).
The shares in CS Corp Pte Ltd (CSC) were acquired by Soilbuild’s wholly-owned subsidiary SB Project Services Pte Ltd from existing shareholders Hiew Ching Yong and Swanhoff Pte. Ltd.
Notably, the firm has developed a Concrete PPVC System – CSVC System (2016) – which has obtained in-principle acceptance for use in local building projects from the Building and Construction Authority (BCA) via the Building Innovation Panel.
Soilbuild Executive Director Ho Toon Bah, said: “The group believes that embracing new technologies, adopting and implementing it in the course of our business is key to ensuring the group stays relevant and continues its growth in the sector in the long run.”
“While we target to substantially complete our integrated construction and precast hub in 2017 and commence the production of precast building components with the automated precast plant in 2018, we are delighted to further strengthen our competencies in modular construction through this cooperation with CSC.”
In addition, CSC is set to commercialise its CSVC System by investing up to S$4 million to start its business in the design, production and assembly of PPVC modules.
PPVC is one of the breakthrough technologies under the Design for Manufacturing and Assembly (DfMA) concept that significantly speeds up construction as the building components are manufactured offsite and assembled in the work area.
Furthermore, the usage of PPVC is obligatory for select non-landed residential sites offered under the Government Land Sales (GLS) programme since 1 November 2014.
As such, the investment in this technology is envisioned to improve the group’s competitiveness as it tenders for local projects, and can be potentially used in its business in Myanmar, which is pushing for rapid urbanisation.
The transaction is not expected to have material impact on Soilbuild’s net tangible assets and earnings per share for the fiscal year ending 31 December 2017.
This article was edited by Denise Djong.
