PETALING JAYA: Loss-making Berjaya Property Bhd (BProperty) is venturing into automotive tyre manufacturing as a minority partner in a joint venture (JV) with Chinese state-owned Trusmax Investment Co Ltd.
A manufacturing plant worth RM1.3bil (about US$320mil) is expected to be set up as part of the JV.
BProperty told the stock exchange that its subsidiary, Alam Baiduri Sdn Bhd (ABSB), had partnered with Trusmax for the manufacturing of automotive tyres, related spare parts and components, as well as the provision of after-sales services.
Trusmax is a 100%-owned subsidiary of Wanli Tire Co Ltd, which is a state-owned enterprise under Guangzhou Industrial Investment Holding Group Co.
BProperty’s ABSB will own a 30% stake in the JV, with a capital contribution of RM244.01mil.
This includes the injection of a 67.9-acre land parcel along Jalan Bukit Tagar, Hulu Selangor. The land, currently an oil palm plantation, has an agreed value of RM118.31mil, although the net book value stood at RM56.17mil by end-June 2026.
“The agreed land value was arrived at after taking into consideration certain construction works as well as land conversion and subdivision costs to be undertaken by ABSB, estimated to be about RM60mil.”
ABSB will fund its portion via internal funds and borrowings of BProperty.
Meanwhile, Trusmax will contribute RM569.34mil for its 70% equity interest.
Apart from the RM813.35mil total capital contribution by ABSB and Trusmax, the remaining RM491.45mil needed to build the manufacturing plant will be financed through borrowings.
