KUALA LUMPUR (Oct 23): T7 Global Bhd has entered into a memorandum of understanding (MoU) with three private companies to form strategic partnerships for the construction of the East Coast Rail Line (ECRL) project.
The three companies are Eastern Pacific Industrial Corp Bhd (EPIC), CMC Engineering Sdn Bhd and China State Construction Engineering (M) Sdn Bhd (CSCEM).
In a filing with Bursa Malaysia yesterday, T7 Global said the MoU will be valid for 12 months and extendable for a further period as mutually agreed upon by all parties.
EPIC, a Terengganu state-linked company, is a service and facilities provider for the marine and oil and gas industries providing integrated customs bonded supply base, port management, fabrication, threading, shutdown and maintenance services.
CMC, meanwhile, is a bumiputera company specialising in the turnkey services of engineering, procurement, construction and commissioning for the railway industry, including systems technology. It also obtains the required licences and capabilities to participate in projects in accordance with the procurement policy of the government.
CSCEM, on the other hand, is a subsidiary of China State Construction Engineering Corp Ltd in Malaysia. The latter is the largest construction and real estate conglomerate in China with experience and expertise in buildings, design and engineering, industrial facilities and infrastructure projects.
T7 Global said it wishes to collaborate with CMC and EPIC as a consortium to undertake the construction of ECRL, with CSCEM to be the technology partner in this strategic partnership to ensure the smooth implementation of the project.
“The collaboration also aims at exploring the business opportunities in relation to the project, to promote itself as Terengganu’s initiatives and contributions towards the well-being of Terengganu’s socio-economic development and to secure the interests of the Terengganu government and that of the federal government’s commitment for participation and implementation of the project such as maximising the participation by local businesses and workforce in the project,” T7 Global said.
It added that the parties also aimed to enter into a formal business collaboration agreement, detailing the relations and full obligations of the parties on the basis of the MoU in accordance with the secured contracts obtained from the federal government.
T7 Global’s share price gained one sen or 2.5% to close at 41 sen yesterday, giving it a market capitalisation of RM148.8 million.
This article first appeared in The Edge Financial Daily, on Oct 24, 2017.
TOP PICKS BY EDGEPROP
Elegan Townhouse, Taman Putra Perdana