TIONG SENG HOLDINGS has won a S$277.3 m building contract from JTC Corporation that ups its order book to S$1.5 billion for completion by 2020.

Tiong Seng said the award, via an open tender, is for the development of JTC Space @ Tuas by its subsidiary, Tiong Seng Contractors. 

Construction will commence on 15 July 2015 and is expected to be completed in 2017. 

The development is the first-of-its-kind facility -- it integrates various factory types to enable the clustering of companies in the manufacturing value chain. (See video at: http://www.jtc.gov.sg/industrial-land-and-space/pages/jtc-space-tuas.aspx)

It will comprise seven land-based factories, 36 ramp-up and 95 flatted factories across two 10-storey blocks and three 9-storey blocks that cater to a range of heavy and light manufacturing industries such as oil and gas, precision engineering and general manufacturing. 

peklianguan crane4Pek Lian Guan, CEO of Tiong Seng Holdings.
NextInsight file photo.
JTC Space @ Tuas will also feature supporting facilities such as a Heavy Vehicle Park, an amenity centre, and a workers’ dormitory.
 

These facilities will offer convenience by reducing commuting time for workers and alleviate road congestion in the vicinity.
 

The co-location of these industries also creates opportunities for closer collaboration, enables better value chain integration and enhances the competitiveness of the entire manufacturing value chain. 

As part of JTC’s efforts in driving construction productivity in its developments, the workers’ dormitory at the JTC Space @ Tuas will be constructed using the Prefabricated Pre-finished Volumetric Construction (“PPVC”) method.

PPVC involves manufacturing complete dormitory units or modules, including its internal furnishing, off-site and then installing them in a lego-like manner on-site. JTC Space @ Tuas will be the first JTC development to adopt the PPVC method. 

By reducing the amount of construction and wet works on site, PPVC can reduce the construction cycle and manpower usage by 30-50%, thus increasing productivity significantly. 

Such savings are important in ensuring the timely delivery of industrial space for industrialists. 

In line with the Building and Construction Authority’s (“BCA”) drive to improve productivity, the project will also utilise Building Information Modelling (“BIM”). 

Stock price 
(1 Jul 2015)
13.6 cents
52-week range 13.5 – 19.6 cents
PE --
Market cap S$125 million
Price/Book 0.468
Dividend yield 1.47%
SGX data  

Mr Pek Lian Guan, CEO of Tiong Seng Holdings Limited, said, “By housing companies along the manufacturing value chain within an integrated development, JTC Space @ Tuas will encourage collaboration between companies, increase their productivity and operational efficiencies while addressing their operational needs at the same time.

"This vision is closely shared by Tiong Seng as we also strive to optimise integration and productivity with the adoption of construction technology. 

"This differentiates us from industry peers as we operate on a varied cost structure while we continue to tender, albeit selectively, in a competitive construction landscape. Leveraging on our extensive expertise and track record, we look forward to delivering quality buildings that utilise an array of construction technologies.” 

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