MGB Bhd, a construction and property development solutions provider and a subsidiary of LBS Bina Group Bhd, held a launch for the 407.5ha development project at Kertih Terengganu Industrial Park (KTIP).
Terengganu Mentri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar officiated at the ceremony in Kemaman.
Also present were MGB Bhd group managing director Datuk Joey Lim Hock Guan and MGB Bhd chief executive officer Datuk Richard Lim Lit Chek along with Retro Court Sdn Bhd director Datuk Hendri Dahlan.
In September 2021, MGB via its wholly owned subsidiary MGB Construction and Engineering Sdn Bhd (MGBCE) signed a turnkey construction agreement with Retro Court Sdn Bhd to jointly develop the Kertih project.
The project is part of KTIP which is set to be Asia’s largest second-generation biorefinery complex.
As the turnkey contractor, MGBCE will undertake the entire design, financing, construction and completion as well as sales and marketing plus credit administration of the Kertih project.
The estimated gross development value (GDV) is approximately RM680mil.
Located in the East Coast Economic Region’s special economic zone, KTIP is strategically connected with ready infrastructure and facilities such as gas processing plants, oil refineries and ports (Kemaman Port and Kertih Port).
To encourage the development of KTIP, the government has offered tax incentives to investors.
Existing investors at KTIP include Arkema Thiochemicals Sdn Bhd and CJ Bio Malaysia Sdn Bhd while US-based biochemical company Gevo is constructing a US$500mil (about RM2.1bil) plant.
MGB Group executive vice- chairman Tan Sri Lim Hock San said MGB was looking forward to starting construction work.
“The Terengganu government has given us excellent support and we are excited to be working together with the state and our joint-venture partner.
“We aim to complete the infrastructure works for Phase 1 of the Kertih project by 2024.
“The sizeable GDV attributed to this project bodes well for MGB.
“Barring any setbacks, we expect the Kertih project to contribute to our top-line within the next year or two.
“We will continue to provide value-added technology solutions to our clients and bid for new projects to boost our momentum, increase our construction order book and enhance stakeholders’ value,” said Lim.