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Mr. John Zhao, Chairman of UBlok, and Mr. Tan Kim San, Chairman of Malaysia’s Kim Hoe Thye Industries Sdn Bhd, formally inked the cooperation agreement. The signing signals the official partnership between the two AAC enterprises focusing on Singaporean, Malaysian and broader Southeast Asian markets. Having admired each other for years and conducted intensive negotiations over recent months, the two firms have now forged a strategic alliance.

According to the cooperation agreement, the two parties will set up a joint venture company. Assets of two existing AAC plants owned by Kim Hoe Thye in Muar and Seremban, together with assets of UBlok’s under-construction 1 million m³ annual capacity AAC plant in Ipoh, will be injected into the JV. The two existing plants in Muar and Seremban will undergo renovation and upgrading. In due course, a new AAC plant with an annual output of 1 million cubic metres will be built in Muar. This will create a total production capacity of 3 million cubic metres along the Golden Economic Corridor on the East Coast of Peninsular Malaysia, forming an industrial layout of “Three Locations, Three Brands, Four Production Lines”. The initiative aims to cater to market demand across Malaysia, Singapore and other export destinations.

The cooperation with Kim Hoe Thye represents an alliance of two industry leaders. Kim Hoe Thye will contribute its established brand and sales channels, while UBlok brings cutting-edge technology and professional management capabilities. “We turn competitors into partners to jointly expand and grow the market.” The repeated emphasis on “strength” in John Zhao’s remarks reflects his robust confidence in future development. “We will assemble the strongest team and, hand in hand with the team from Kim Hoe Thye, realise the strategic vision of both sides.”

Kim Hoe Thye Industries Sdn Bhd entered Malaysia’s AAC market in 2009. With a 17-year track record to date, it ranks among Malaysia’s earliest enterprises engaged in the AAC industry. Its “Greencon” brand enjoys high recognition and an excellent reputation across Malaysia and Singapore.

In 2017, Kim Hoe Thye acquired Saint-Gobain’s AAC production base in Malaysia along with the “HENNER” brand. This move made it one of Malaysia’s largest AAC operators at that time with two production bases and two brands.

“UBlok delivers impeccable technology, management and products. This is the finest AAC factory I have seen across the globe,” said 77-year-old Mr. Tan Kim San, Chairman of Kim Hoe Thye, following his tour of UBlok’s Changxing facility. His confidence in the cooperation was palpable.“I trust the teams of Kim Hoe Thye and UBlok. I trust the Malaysian market. I trust our partnership.” Using three “confidence” statements, Mr. Tan shared his high hopes for the collaboration.

According to publicly available data, Malaysia’s GDP growth rates over the past three years stood at 3.6%, 5.2% and 5.2% respectively. Meanwhile, the construction sector registered growth rates of 6.1%, 17.5% and 12.2%. The construction industry accounts for approximately 4% to 5.8% of national GDP, outpacing overall GDP growth. Growth in the construction market is mainly driven by public and private infrastructure projects, data centres and affordable housing schemes.

Note: The “Three Locations, Three Brands, Four Production Lines” framework is defined as follows:“Three Locations” refers to the three production bases in Muar, Seremban and Ipoh;“Three Brands” stands for the three brands, namely Greencon, HENNER and UBlok;“Four Production Lines” covers one existing AAC production line each in Muar and Seremban, the AAC production line under construction in Ipoh, and the upcoming new production line to be built in Muar.