FRIDAY, March 29, 2024
nationthailand

Israeli construction firm eyes SE Asia

Israeli construction firm eyes SE Asia

ISRAEL'S DANYA Cebus Construction is expanding into Southeast Asia by establishing a 49:51 joint venture with Major Development Plc, targeting construction projects valued at Bt3 billion-Bt5 billion per year.

TMDC Construction Co has registered capital of Bt100 million. 
Danya Cebus, a subsidiary of Africa Israel Investments, was listed on the Tel Aviv Stock Exchange in 2000. The construction company operates in Israel, Russia and Romania. It earned US$21.4 million (Bt723 million) on revenue of $736.4 million last year. It was put on the list of the “Top 100 leading Israeli companies” by DUN’S100.
“This is our first time in Southeast Asia. We see strong demand for construction in this region when the Asean Economic Community is effective in December. 
Asean countries need to develop their infrastructure and buildings, so we selected Thailand to be our headquarters in Asean,” CEO Ronen Ginsburg told a press conference yesterday. 
The company will focus on the private sector for the first three years by targeting to work on three to five condominiums, office buildings, hotels or retail buildings valued at Bt3 billion-Bt5 billion a year. Then the company will form consortiums to jointly bid on public sector projects. 
“We have long experience developing infrastructure in countries such as Russia, Romania, the US and other countries of Eastern Europe. 
“In Thailand, we have to take about three years to build our portfolio before expanding to develop the government’s infrastructure projects,” he said. 
Thailand has strong growth potential to develop high-rises such as condos, offices, retail centres and hotels, while the government has a policy to develop the country’s infrastructure worth over Bt2 trillion within eight years.
TMDC Construction has won the contract to construct Canapaya Residences, a condo worth more than Bt1 billion in Bangkok.
Suriya Poolvoralaks, managing director of Major Development and manager executive of TMDC Construction, said Major expanded into the construction business when it saw strong demand. It also believed in the long experience and construction technology of Danya Cebus. That will create a strong construction business in Thailand for the long term. 
“Five years from now, the construction business will contribute 10-20 per cent of our revenue,” he said. 
The construction business targets average growth of 10 per cent a year.
Major Development has developed two to three condominium projects worth Bt3 billion-Bt5 billion a year. This year it is launching two condo projects worth Bt4.7 billion.
 
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