Tanco joint venture wins RM700 million Klang warehouse job
Tanco’s earnings from the project are restricted to an agreed fee, while its consortium partner will handle construction and bear execution risks.
A joint venture involving Tanco Holdings Bhd has won a RM700 million contract for a warehouse complex in Klang, Selangor, with completion scheduled for November 2028. Tanco said work began on Nov 5 and would take 24 months.
In a Bursa filing, Tanco said Jaroses Partners Sdn Bhd awarded the project to the venture comprising its wholly-owned Tanco Builders Sdn Bhd and CNECC Engineering (Malaysia) Sdn Bhd. CNECC Engineering is a unit of China Nuclear Industry Huaxing Construction Co Ltd.
Under the consortium’s division of responsibilities, Tanco Builders will coordinate and manage the project. CNECC Engineering will carry out construction and assume the costs, liabilities and execution risks. Tanco’s financial return is confined to an agreed fee, whose amount was not disclosed.
The Lebuh Raya Pulau Indah development includes two ambient warehouses, each single-storey, plus a warehouse for cold storage. Other facilities include an office building, canteen, surau, 33kV electricity substation, pump house, guard house and sewerage treatment plant.
The award encompasses labour, equipment, materials and transport, alongside building work, testing, commissioning, handover and maintenance. The partners established their consortium in December 2025 to jointly pursue Malaysian logistics warehouse and mega-storage construction contracts.
Tanco shares were trading at 14.5 sen, lower by half a sen or 3.33%, when the report was published. This valued the company at RM889.4 million. The shares had lost over 80% over the preceding year.
