KUALA LUMPUR: Sino-foreign joint venture (JV) company, China-Malaysia Qinzhou Industrial Park Development Co Ltd, expects the start-up phase of the Qinzhou Industrial Park (QIP) in Qinzhou, China, to generate sales of 5.2 billion yuan (RM2.7 billion).
The Malaysian consortium comprising S P Setia Bhd and Rimbunan Hijau Group owns 49% of the JV company, while the Chinese consortium, represented by Qinzhou Jingu Investment Co Ltd, owns 51%.
The JV company said the sales of 5.2 billion yuan will be derived mainly from land transactions to industrial and commercial entities seeking to set up businesses in QIP.
“Construction of the start-up phase covering 778ha is expected to take about three years,” the JV company said in a statement yesterday.
It said the phase includes land identified for industrial and residential use, ample amenities such as schools, hotels, community centres, parks, playgrounds and green spaces.
QIP, the third park in China to be developed under a government-to-government collaboration, has a total planned area of 5,436.2ha.
The JV contract was signed yesterday by both consortia, witnessed by International Trade and Industry Minister Datuk Seri Mustapa Mohamed and the People’s Government of Guangxi Zhuang Autonomous Region governor Chen Wu.
S P Setia COO Datuk Voon Tin Yow said the Malaysian consortium looks forward to commence development work on the project shortly.
“We hope the project will not just benefit the consortium members as investors and developer of QIP, but will also help deepen the already strong bilateral relationship between our two countries,” he said in a statement.
Meanwhile, Kuantan Pahang Holdings Sdn Bhd entered into a conditional subscription and shareholders’ agreement with Guangxi Beibu Gulf Asean Investment Co Ltd to set up a JV vehicle for the proposed development of the Malaysia-China Kuantan Industrial Park (MCKIP).
Under the agreement, Kuantan Pahang Holdings owns 51% of the JV company to develop the industrial park and Guangxi Beibu Gulf Asean Investment owns the rest.
Kuantan Pahang Holdings is owned by S P Setia, which holds 40% in the Malaysian consortium followed by RH Property Holdings (30%), Perbadanan Setiausaha Kerajaan Pahang (18%) and Perbadanan Kemajuan Negeri Pahang (12%).
Mustapa, in his opening remarks, said he was pleased to note that the QIP project is progressing well.
“This is a reflection of the close relationship between China and Malaysia.
“Together with the MCKIP, it is an important platform to foster closer ties between the industries of both countries,” he said. — Bernama
This article first appeared in The Edge Financial Daily, on July 16, 2013.
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