The cooperation agreement was formally signed by Mr. Zhao Yongxiang, Chairman of UBlok, and Mr. Tan Kim San, Chairman of KIM HOE THYE Industries Sdn Bhd of Malaysia. The signing ceremony marked the official partnership between two professional AAC enterprises dedicated to developing the Singapore and Malaysian markets. After years of mutual recognition and months of negotiation, the two parties have finally reached a strategic alliance.
In accordance with the cooperation agreement, the two sides will jointly establish a joint venture company. The joint venture will inject assets from KIM HOE THYE’s two existing AAC production plants in Muar and Seremban, as well as the assets of UBlok’s under-construction AAC plant with an annual capacity of 1 million cubic meters in Ipoh. The Muar and Seremban factories will undergo renovation and upgrading, and a new plant with an annual output of 1 million cubic meters will be built in Muar at an appropriate time. Along the East 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 cooperation represents a powerful alliance. KIM HOE THYE brings well-established local brands and mature sales channels, while UBlok contributes leading technology and standardized management. We turn competitors into partners to jointly expand market scale," said Chairman Zhao Yongxiang, who expressed full confidence in future development. "We will assemble a top-tier team and collaborate closely with the KIM HOE THYE team to realize the shared strategic vision of both sides."
Founded in 2009, KIM HOE THYE Industries Sdn Bhd has 17 years of operation experience in Malaysia’s AAC industry and ranks among the earliest local AAC manufacturers. Its brand "Greencon" enjoys high visibility and reputation across Singapore and Malaysia. In 2017, KIM HOE THYE acquired Saint-Gobain’s AAC production base and the "HENNER" brand in Malaysia, making it one of the largest local AAC enterprises with dual manufacturing bases and dual brands at that time.
"UBlok’s technology, management and product quality are impeccable. This is the best AAC factory I have visited worldwide," said 77-year-old Chairman Tan Kim San after touring UBlok’s Changxing production base, fully conveying his optimism for the cooperation. He voiced his expectations with three levels of confidence: full confidence in the joint team of KIM HOE THYE and UBlok, full confidence in Malaysia’s construction market, and full confidence in this strategic partnership.
According to public statistical data, Malaysia’s GDP growth rates for the past three years were 3.6%, 5.2% and 5.2% respectively, while the construction industry recorded year-on-year growth of 6.1%, 17.5% and 12.2% in the same period. The construction sector accounts for 4% to 5.8% of national GDP, with its growth rate consistently outperforming overall economic growth. The expansion of the construction market is mainly driven by public and private infrastructure projects, data center construction and affordable housing programs.
Note: The definition of "3 Locations, 3 Brands, 4 Production Lines": "3 Locations" refer to three manufacturing hubs including Muar, Seremban and Ipoh; "3 Brands" stand for Greencon, HENNER and UBlok; "4 Production Lines" cover one existing production line each in Muar and Seremban, the ongoing Ipoh production line, and the new planned production line in Muar.
