Mudajaya Group Berhad, has announced its investment in China, with the acquisition of the entire equity interest in Real Jade Limited; by a wholly-owned indirect subsidiary of the Group, Xelmont Limited. This was for an indicative purchase consideration of HKD400,000,000 (equivalent to RM224,320,000) on an accepted net asset basis.
Real Jade Limited is principally engaged in investment holding. Through its subsidiaries, the company commenced business in 1993 and is involved in the manufacturing and trading of cement and clinker in China. The company and its subsidiaries are also involved in the provision of energy conservation and reuse solutions, through the installation of energy-efficient and environmentally friendly air-conditioning and heating systems for commercial, residential, and industrial buildings.
The group also owns and operates a production plant located in Shandong, China. The plant possesses a total land area of approximately 1.4 million square feet for its manufacturing of cement and clinker; with an annual production capacity of 1 million tonne. Over the years, Real Jade Group has invested over RMB10 million in research which is supported by a workforce of more than 50 employees.
With its acquisition, Mudajaya has expanded its geographical footprint into the China market, which bodes well with the Group’s objective to capture the growth opportunities abroad in the manufacturing and trading of construction materials.
China’s central and local governments are expediting the rollout of major infrastructure projects as the country faces downward economic pressure. The country’s top economic planning agency recently announced that it will moderately front-load infrastructure investment and steadily push forward mega projects earmarked for the 14th Five-Year Plan period (2021-25).
According to Mudajaya Group Managing Director and Chief Executive Officer, Ir. James Wong, “We see the growth potential in China, and this expansion into the China market will supplement our local trading and manufacturing of construction materials, as well as expand our market presence overseas.” This expansion of Mudajaya’s trading and manufacturing segment overseas will allow the Group to expand its revenue stream.
