As Mr. John Zhao, Chairman of UBlok, and Mr. Tan Kim San, Chairman of Kim Hoe Thye Industries Sdn Bhd of Malaysia, put down their signatures respectively, the two parties officially signed the cooperation agreement. This marks that after years of mutual recognition and months of in-depth negotiation, the two AAC specialists committed to penetrating the Malaysian, Singaporean and Southeast Asian markets have finally reached a successful partnership.
Pursuant to the cooperation agreement, the two sides will establish a joint venture company. Assets to be injected include those of Kim Hoe Thye’s two existing AAC plants in Muar and Seremban, as well as assets of UBlok’s under-construction Ipoh AAC plant with an annual capacity of 1 million cubic meters. The two plants in Muar and Seremban will be renovated and upgraded. In due course, a new AAC plant with an annual output of 1 million cubic meters will be built in Muar. Along the Eastern Coast Golden Economic Corridor of West Malaysia, a total production capacity of 3 million cubic meters will be formed, creating an industrial layout of "3 Locations, 3 Brands, 4 Production Lines" to meet market demand in Malaysia, Singapore and other export destinations.
"This partnership with Kim Hoe Thye represents a powerful alliance. Kim Hoe Thye brings its well-established brand and mature sales channels, while UBlok contributes leading-edge technology and standardized management. We turn competitors into collaborators to jointly expand and strengthen the market," said Mr. John Zhao. The repeated emphasis on "strength" in his remarks reveals solid confidence in future growth. "We will assemble the most competitive team and work alongside Kim Hoe Thye’s team to fulfill the strategic vision of both parties."
Kim Hoe Thye Industries Sdn Bhd entered Malaysia’s AAC industry in 2009, boasting a 17-year industry track record to date. It ranks among Malaysia’s earliest AAC manufacturers, and its "Greencon" brand enjoys high visibility and an excellent reputation across Malaysia and Singapore. In 2017, Kim Hoe Thye acquired Saint-Gobain’s Malaysian AAC production base and the "HENNER" brand. This made it one of Malaysia’s largest AAC enterprises at that time, operating two manufacturing bases under two independent brands.
"I find UBlok’s technology, management systems and product quality impeccable. This is the finest AAC manufacturing plant I have seen anywhere in the world," said 77-year-old Mr. Tan Kim San, Chairman of Kim Hoe Thye, after visiting UBlok’s Changxing production base. His confidence in the bilateral cooperation was palpable. "I have faith in the teams of Kim Hoe Thye and UBlok, faith in Malaysia’s construction market, and faith in our joint venture." The three reiterations of "faith" fully convey Mr. Tan’s high expectations for this partnership.
Public economic data shows Malaysia’s annual GDP growth rates over the past three years stood at 3.6%, 5.2% and 5.2% respectively. Meanwhile, the construction sector achieved growth of 6.1%, 17.5% and 12.2% in the corresponding period, accounting for approximately 4% to 5.8% of national GDP. The construction industry consistently outpaces overall GDP growth, driven mainly by public and private infrastructure projects, data center construction and affordable housing programs.
🔹 FOR THE BEST
Supplementary Explanatory Note
The layout concept of "3 Locations, 3 Brands, 4 Production Lines" is defined as follows:
3 Locations: Three production bases located in Muar, Seremban and Ipoh;
3 Brands: Three proprietary brands including Greencon, HENNER and UBlok;
4 Production Lines: One existing AAC production line each in Muar and Seremban, the ongoing Ipoh production line, and the upcoming new production line to be constructed in Muar.
