Tiong Seng is in a joint venture with Japanese market leader Geostr Corporation to manufacture precast tunnel segments. L-R: Mr Pek Lian Guan (Tiong Seng CEO) | Mr Minori Kuriyama (Geostr Corporation President) | Mr Yoshinori Kubo (Marubeni-Itochu Steel Managing Director). Photo by Tok Chong Yap
IN LAND-SCARCE Singapore, tunneling is big business.
Running across the island are deep tunnel networks for MRT trains, sewerage systems and the nation’s electricity power grid.
The upcoming Thomson Line, with 22 MRT stations spanning 30 km, will operate fully underground too.
LTA recently awarded civil engineering contracts to the tune of S$1.13 billion for the construction of four Thomson Line MRT stations and their associated tunnels.
Thomson Line will be completed in phases between 2019 and 2021.
SGX-listed Tiong Seng Holdings, which won the S$316 million contract for Thomson Line’s Great World Station project, is going into precast tunnel manufacturing to tap on the demand for tunnels.
The leading Singapore building and civil engineering contractor inked a joint venture agreement on Wednesday with Geostr Corporation and Marubeni-Itochu Steel to manufacture and supply precast tunnel segments.
"Our precast tunnel segment business will target all MRT contractors in Singapore, and is independent of whether we win any MRT station construction project," said Tiong Seng CEO Pek Lian Guan. Photo by Sim Kih“It is timely that Tiong Seng is embarking on the next phase of our precast business with this joint venture in tunnel segments as Singapore rolls out large MRT projects,” said Tiong Seng CEO Pek Lian Guan.
Mr Pek was speaking at the media conference that followed the JV signing ceremony held at Pan Pacific Singapore hotel yesterday (June 11).
"Precast tunnel segments require much more rigorous technology than the precast building components that we currently produce," he added.
Tiong Seng entered the precast business two years ago when it opened Singapore’s first precast automation hub in Tuas.
The new precast tunnel segment manufacturing facility will be housed in Tiong Seng’s existing precast plant in Iskandar, Malaysia.
Geostr is Japan’s market leader for precast tunnel segments, with a 40% market share for Japanese subways.
The Japanese precast concrete manufacturer will hold a 51% stake in the JV company, and provide its technical expertise. Tiong Seng will hold 44%.
"Singapore's tunnel systems will extend deeper underground as the nation develops.
"Our technology enables tunnels to withstand greater topsoil weight and water pressure," said Geostr Corporation President Minori Kuriyama.
Marubeni-Itochu Steel is a Japanese steel trading company that will hold 5% of the JV and distribute its precast tunnel segments.
The new precast tunnel segment manufacturing facility will cost the JV partners S$14.5 million and is slated to commence production in the first half of next year.
As at 31 May, Tiong Seng had an order book of S$1.27 billion, slated for delivery through to 2020.
Tiong Seng's stock price rebounded to 19.6 cents in the past 3 days. Bloomberg data
Recent story: TIONG SENG, SOILBUILD CONSTRUCTION Win Big Contracts
