PETALING JAYA: IJM Corp Bhd
’s investment in one of South-East Asia’s largest automated spun pile plants is expected to enhance its competitiveness, lower production costs and strengthen its ability to secure large infrastructure, advanced manufacturing and data centre (DC) projects.
This has prompted CIMB Research to maintain its “buy” recommendation with an unchanged target price of RM2.95.
Following a site visit to Industrial Concrete Products’ (ICP) new Bestari Jaya factory (ICP BJF), the research house said the facility significantly strengthens IJM’s industry division by expanding ICP Piles’ annual production capacity to more than 2.2 million tonnes from about 1.8 million tonnes previously.
It estimates the project costs at approximately RM300mil, including land.
CIMB Research believes automation is the plant’s biggest competitive advantage.
“We estimate ICP BJF to achieve 5% to 10% lower production costs versus conventional baselines, primarily driven by 40% labour rationalisation via automation.”
The plant incorporates Industrial Revolution 4.0 technologies, including fully automated bar-cutting and cage-making systems, machine-assisted spinning processes, a centralised digital platform for predictive analytics, integrated sludge management and precision bar placement systems.
These initiatives are expected to improve operational efficiency, while reducing reliance on labour.
Beyond cost savings, CIMB Research sees ICP BJF as a strategic asset that enhances IJM’s integrated construction offering.
Located just 8km from IJM’s SMART Industrialised Building System (IBS) facility, the plant allows spun pile production to be integrated with IBS precast solutions, enabling faster project execution.
“Offering an integrated solution strengthens IJM’s ability to bid for large-scale, time-sensitive projects, particularly advanced manufacturing facilities and DCs.”
It also believes the plant could become a blueprint for upgrading ICP Piles’ other facilities through digitalisation and automation, further improving economies of scale and reinforcing its leadership in Malaysia’s spun pile market.
ICP Piles now operates 13 production lines across nine facilities nationwide and has supplied nearly 40 million tonnes of spun piles since its establishment in 1977.
CIMB Research highlighted the group’s growing international footprint, noting that ICP Piles has exported to more than a dozen markets, including Singapore, Brunei, Indonesia, Vietnam, Saudi Arabia, the United Kingdom, Canada and the United States, with landmark projects such as Gardens by the Bay, Temburong Bridge and Shebara Resort.
The new plant also supports IJM’s environmental, social and governance (ESG) agenda.
Solar panels capable of generating up to 3.22MW, natural curing processes, rainwater harvesting and concrete recycling are expected to deliver annual utility savings of approximately RM1.1mil.
For FY26, CIMB Research forecast the industry division to contribute RM208mil, or 31%, of IJM’s core pre-tax profit, underscoring the segment’s growing importance to the group’s long-term earnings outlook.
