Lafarge aims to complete supply contract deal for Forest City this year

Lafarge is to supply concrete for the proposed Refinery and Petrochemicals Integrated Development (Rapid) project and other Petronas-related projects at Pengerang, Johor under Package 21D.

KUALA LUMPUR: Malaysia’s largest cement producer by capacity, Lafarge Cement Sdn Bhd, aims to complete its supply contract deal with Country Garden Pacific View Sdn, Bhd for the Forest City project, by the first half of this year.

Lafarge executive director and chief financial officer Michael Lim said both companies were currently in the midst of discussions for the potential contract.

“There is no specific value mentioned (for the contract), but it is a very good beginning for future cooperation.

“It augurs well for a good volume (cement production) given the sizeable Forest City project which has a gross development value of more than RM400 billion,” he told reporters after the exchange of a memorandum of understanding (MoU) document with Country Garden here today.

The exchange of MoU was witnessed by International Trade and Industry Minister Datuk Seri Mustapa Mohamed at the Specialised Building Materials Supply Chain Conference 2017.

Lim said the MoU, signifying the beginning of discussions between both companies, was valid for one year, and was for the supply of ordinary Portland cement and mascrete low heat cement for the project.

Besides supplying cement for the Forest City project, Lafarge was also looking at opportunities to cooperate for building materials, building solutions and other aspect of cooperation.

He said Lafarge was in good position and was well equipped to supply a substantial tonnage of cement for not only Forest City, but for other mega projects in the country.

“We are one of the preferred suppliers because of our reputation, technical sophistication and technical know-how,” he added.

The development and construction of Forest City would generate about RM1.2bil worth of business for 32 local contractors and more than 100 suppliers for the first phase of the project.

The 1,386 hectare joint venture project between Malaysia and China in Iskandar Malaysia, is expected to completed by 2045. - Bernama