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Thread: Koh Brothers beefs up capacity with new Iskandar precast plant

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    Default Koh Brothers beefs up capacity with new Iskandar precast plant

    Koh Brothers beefs up capacity with new Iskandar precast plant

    Published on Oct 10, 2013

    By Yasmine Yahya

    CONSTRUCTION company Koh Brothers Group has finished building its precast plant in Iskandar Malaysia and expects to start full operations before the end of the year.

    The $13 million plant will double the company's annual precast production capacity to about 150,000 cubic metres.

    Koh Brothers operates three precast plants in Singapore with a total annual production capacity of 75,000 cubic metres - equivalent to 2,300 to 2,500 HDB units.

    "The establishment of our new plant in Malaysia is timely, in view of the Singapore Government's intention to ramp up housing supply," said Koh Brothers chief executive Francis Koh yesterday. He said the decision to have another precast plant was made "when the Government announced the intention to ramp up housing supply to 90,000 private units and 110,000 public homes by 2016".

    Koh Brothers chose the plant's Senai location as many precast producers and related suppliers are based there, providing a network that the company can tap. "Recently, we've had a lot of meetings with other precast manufacturers with whom we can work," said Mr Koh.

    The plant, owned by the company's building materials unit G & W Group, has six production lines served by 12 gantry cranes.

    These can manufacture a full range of precast components for residential and industrial buildings and infrastructure such as columns, beams and facades.

    The plant includes a dormitory that can accommodate more than 100 workers. The overall planning and control of the plant will be linked digitally with the main plant at Tampines so the equipment and activities can be managed from Singapore, Mr Koh said."The new plant's close proximity to our headquarters in Singapore ensures highly efficient supply-chain management.

    "Not only will the new plant enhance our productivity, but it will also bring greater cost efficiencies and therefore potential margin improvements."

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    Default New Koh Bros plant to double precast output

    Published October 10, 2013

    New Koh Bros plant to double precast output

    By ong chor hao [email protected]

    MAINBOARD-LISTED Koh Brothers Group is set to double its annual precast production output, after opening its first precast plant in Senai, one of the flagship zones in the Iskandar region in Johor.

    The company said yesterday that its wholly-owned building materials unit G&W Group has started operations at the plant, which will be able to produce about 75,000 cubic metres of precast material a year when it achieves full capacity.

    The plant will manufacture a wide range of prefab components that can be used for residential, industrial and infrastructure purposes, such as columns, beams and facades, and is expected to be fully operational by the end of this year.

    When that is achieved, the total production of prefabricated material by Koh Brothers will double to around 150,000 cubic metres a year, after factoring in the contribution from the company's three precast plants in Singapore.

    That amount of material is enough for about 4,600 to 5,000 Housing and Development Board (HDB) homes, said Francis Koh, managing director and group CEO at Koh Brothers.

    The company, which is mainly in the construction, property development and engineering businesses, invested $13 million in the 4.7-hectare freehold plot in Senai about one and a half years ago, as part of plans to expand its operations.

    The decision was made based on the sheer number of homes that will be built over the next few years in Singapore, as well as to answer the government's call to raise productivity in the construction sector.

    Cost competitiveness was another factor.

    "In terms of operating costs it will be about 20 to 25 per cent lower than Singapore," Mr Koh said of the Senai plant.

    He said that the company will keep the design and planning team, as well as project management operations, largely based in Singapore, with the Senai plant focusing on production. With the new plant's opening, Koh Brothers now has about 9.6 ha of land area dedicated to precast production.

    The bulk of the prefab materials produced by Koh Brothers is used for HDB projects.

    As output increases and given the new plant's location, Mr Koh hopes to also serve developers working on Iskandar projects as well as private developers in future.

    Shares in Koh Brothers closed unchanged yesterday at 29.5 cents.

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