Berjaya Property enters RM813.35 mil tyre manufacturing JV with Wanli subsidiary

PETALING JAYA (July 6): Berjaya Property Bhd, via its wholly-owned subsidiary Alam Baiduri Sdn Bhd, has entered into a joint venture (JV) agreement with Trusmax Investment Co Ltd to develop and operate an automotive tyre manufacturing business in Malaysia through a new joint venture company. Trusmax is a wholly-owned subsidiary of China-based Wanli Tire Co Ltd.

Under the agreement, the JV will undertake the research, development, design, manufacturing and sale of automotive tyres, as well as related components and after-sales services.

The JV includes the transfer of a 67.90-acre freehold parcel in Mukim Sungai Tinggi, Ulu Selangor, which forms part of a larger 372.55-acre agricultural estate acquired in 2017 and currently used as an oil palm plantation. The land carries a net book value of RM56.17 million as at June 30, 2026.

Berjaya Property said the agreed value of RM118.31 million reflects the underlying book value as well as estimated costs related to construction works, land conversion and subdivision to be undertaken by Alam Baiduri.

The JV will be held 70% by Trusmax and 30% by Alam Baiduri. Total equity funding is set at RM813.35 million, with Trusmax contributing RM569.34 million in cash, while Alam Baiduri will inject RM125.70 million in cash and the freehold land parcel valued at RM118.31 million.

The project’s total estimated development cost is about RM1.30 billion, comprising approximately 63% equity and 37% borrowings, with the remaining RM491.45 million to be financed via debt. Alam Baiduri’s total exposure, including cash and land-related obligations, is about RM185.70 million, to be funded via internal resources and borrowings at group level.

Trusmax and Wanli profile

Trusmax, incorporated in Hong Kong on Nov 11, 2024, has registered capital of US$10,000 (approximately RM40,800) and is a wholly-owned subsidiary of Wanli Tire Co Ltd. Wanli, incorporated in the People’s Republic of China on Dec 7, 2004 with registered capital of RMB1.18 billion, is a state-owned enterprise under Guangzhou Industrial Investment Holding Group Co Ltd and is principally engaged in tyre research and development, manufacturing, sales and servicing.

Wanli holds National Enterprise Technology Center and High-Tech Enterprise qualifications, and its three largest shareholders are Guangzhou Vanlead Group Co Ltd (44.94%), Guangzhou Industrial Investment Holding Group Co Ltd (18.68%) and Guangzhou Industrial Control Mixed Reform Equity Investment Fund Partnership Enterprise (Limited Partnership) (5.32%).

Rationale, impact and governance

The group said the partnership allows Berjaya Property to enter the tyre manufacturing sector by leveraging Wanli’s technical capabilities, manufacturing expertise and industry experience.

The JV is not expected to have any immediate material impact on earnings or net assets but is expected to contribute positively upon commencement of operations. It will not result in any change to issued share capital or substantial shareholding structure.

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