IRIS signs JV to develop, manufacture and construct IBS

KUALA LUMPUR: IRIS Corporation Bhd has signed a joint-venture (JV) agreement with Koto Malaysia Sdn Bhd and Ambitech Sdn Bhd for the development, manufacture and construction of Koto's Industrialised Building System (IBS).

In a filling to Bursa Malaysia on Monday, Feb 7, IRIS said the three companies is expected to incorporate a private limited company within the next 180 days from Feb 7, with the shareholdings of the company to be IRIS 60%, Koto 30% and Ambitech 10%

IRIS said that the terms of the JV agreement includes Koto to build, design, install, test, start-up and commission the manufacturing plant prior to handing over the plant to the JV company (JVC). Koto will provide all technical support and transfer the know-how of Koto IBS into the JVC.

IRIS added that the JV would mean Koto to provide a perpetual license and rights to use and manufacture the Koto IBS and its products by the JVC in West Malaysia and that Ambitech shall provide consultancy and marketing services relevant and as required by the JVC. IRIS added that the company is to pay an upfront one-off license fee for the Koto IBS amounting US$50,000 (RM151,750) and shall invest into the JVC with total investment sum  of US$1,000,000 only.

"Koto IBS is an alternative way to mass manufacture energy efficient housing, commercial buildings, high-rises and affordable housing. The Koto IBS is a fully integrated system — from the foundation, walls of all types, to ceilings, suspended ceilings, roofing, columns, beams and lightweight lintel beams," the company said.

It added that the rationale for the JV is to promote and deploy this alternative building or construction technology.