TANCO Holdings Bhd said its indirect wholly-owned subsidiary Tanco Builders Sdn Bhd has entered into an unincorporated joint venture agreement with CNECC Engineering (Malaysia) Sdn Bhd (CNECC) to source and bid for logistics warehouse and mega-storage construction projects in Malaysia.

The agreement was signed on Dec 23, with both parties combining resources to secure overall contracts, with Tanco Builders leading negotiations, stakeholder coordination and project management.

CNECC will provide technical expertise and resources covering value engineering, procurement, construction and commissioning, and may provide corporate guarantees where required for project delivery.

The company said in a filing that the arrangement is aimed at broadening its construction profile beyond its existing mix by targeting large-format logistics and storage developments.

CNECC, ultimately owned by China Nuclear Industry HuaXing Construction Co Ltd, is involved in building construction and project management.

Tanco rose 2 sen to RM1.15 today, up 1.77%, valuing the group at RM7.05 billion. — TMR