IJM Construction secures two building projects totaling RM962.3 million

PETALING JAYA, June 24, 2024 -- IJM Construction Sdn Bhd (“IJM Construction”), a wholly-owned subsidiary of IJM Corporation Berhad (“IJM” or “the Group”), has secured two new contracts worth a total of RM962.3 million. These projects include the construction of a logistics hub in Shah Alam and a semiconductor manufacturing facility for Siliconware Precision Malaysia in Penang.

Logistics Hub (Plot A), Section 15, Shah Alam

IJM Construction has secured a RM584.3 million contract from Strategic Sonata Sdn Bhd for the construction of Plot A of a logistics hub at Section 15, Shah Alam in Selangor. The project involves the construction and completion of six storeys of ramp-up warehouses with offices, a two-storey cafeteria, and all associated ancillary structures and services. The project is expected to be completed within 28 months from the commencement date, scheduled for 20 June this year.

Mr. Lee Chun Fai, Group CEO & Managing Director of IJM Corporation Berhad, stated:

"The logistics sector presents significant growth opportunities, and this project reaffirms our commitment to delivering high-quality, sustainable infrastructure. Leveraging advanced construction methods and value engineering, we aim to meet our clients' evolving needs while maintaining our focus on sustainability and efficiency. This logistics hub project underscores our capability to execute large-scale logistics developments that align with our strategic goals and environmental objectives."

The project aims to achieve the GreenRE Gold certification by adopting it as the benchmarking and assessment system for the development. The GreenRE assessment will evaluate the design, construction, and operational phases of the building, ensuring compliance with stringent environmental standards. The certification process focuses on six key pillars: energy efficiency, water efficiency, carbon emission reduction, environmental protection, indoor environmental quality and the integration of other green features.

Semiconductor Manufacturing Facility for Siliconware Precision Malaysia Sdn Bhd

IJM Construction has also been awarded a RM378 million contract to construct Phase 1 of a semiconductor manufacturing facility for Siliconware Precision Malaysia Sdn Bhd at Bandar Cassia Technology Park, Penang. Siliconware Precision Malaysia is part of ASE Technology Holding Co. Ltd., the world’s largest outsourced semiconductor assembly and test company. The Phase 1 facility will include a four-storey production building with an office, a four-storey centralised utilities building, a four-storey warehouse building, a 33 kV substation building, and a link bridge to support advanced semiconductor production. The construction is set to commence in May 2024 and complete by October 2025.

To accelerate the construction process, IJM Construction will utilise the SMART IBS (Industrialised Building System) solution from IJM IBS Sdn Bhd. This advanced construction method enhances efficiency, reduces construction time, and ensures superior quality by using prefabricated components manufactured in an IR4.0 automated precast system off-site and then assembled on-site. This approach minimises environmental impact and showcases the Group’s vertically integrated construction capabilities, ensuring streamlined project execution with high-quality results.

Mr. Lee further commented:

"Rising demand in logistics, warehousing, data centres, and electrical and electronics manufacturing presents significant growth opportunities for our future pipeline. Our strategic focus on these developments positions us effectively to capitalise on these opportunities. These contract wins demonstrate our ability to deliver complex, fast-track projects that meet the stringent requirements of high-tech industries. We are committed to providing robust infrastructure that supports technological advancements and sustainable development."

This strong project portfolio has strengthened IJM Construction's order book to RM7 billion, comprising high-profile private and public sector projects in building construction and civil engineering, ensuring near-term earnings visibility.

Photos and caption

Artist's impression of the Siliconware Precision Malaysia Sdn. Bhd. semiconductor manufacturing facility in Bandar Cassia Technology Park, Penang.

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About IJM Corporation Berhad

IJM Corporation Berhad (“IJM”), formed in 1983, today ranks as one of Malaysia’s leading conglomerates with an international footprint forged by its four core businesses: construction, property development, industry (quarrying and the manufacture of building materials) and infrastructure concessions. IJM holds leading positions across all its business divisions. Its growth is the direct result of strong leadership, dedicated employees, financial prudence and commitment to good governance and quality.

The Group presently has a market capitalisation of around RM10.65 billion and as of 31 March 2024, the Group employed around 3,300 employees and had total assets of RM21.3 billion.

For more information, visit www.ijm.com

For media enquiries, please contact:

Ms. Mandy Chen, Corporate Communications, at [email protected] or + 60 12 607 6121

Mr. Shane Guha Thakurta, Investor Relations, at [email protected] or + 60 3 7985 8041

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