Tanco JV wins RM700 million industrial warehouse contract in Klang

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Tanco’s Klang warehouse contract

Highlights

The joint venture between Tanco Builders and CNECC Engineering has secured a RM700 million contract from Jaroses Partners to build a warehouse complex on Pulau Indah Highway.
CNECC Engineering will bear the project costs, liabilities and risks, while Tanco’s profit is limited to a fee that was not disclosed in the consortium agreement.
Tanco shares fell 3.33% to 14.5 sen at the time of writing, giving it a market capitalisation of RM889.4 million, after declining more than 80% over the past year.

This article was translated from the original. Read the original version by our correspondent here.

Contract details and allocation of roles

According to The Edge Malaysia, citing Tanco’s exchange filing on Thursday, a joint venture between its wholly owned subsidiary, Tanco Builders Sdn Bhd, and CNECC Engineering (Malaysia) Sdn Bhd received a letter of award from Jaroses Partners Sdn Bhd for the project.

The RM700 million contract covers the supply of labour, machinery, plant, materials and transportation, as well as the project’s construction, testing, commissioning, handover and maintenance. The warehouse complex on Pulau Indah Highway comprises two single-storey ambient warehouses, a cold-storage warehouse, an office building, a canteen and a prayer room, along with supporting infrastructure such as a 33kV electrical substation, pump house, guardhouse and sewage treatment plant.

Under the consortium arrangement, Tanco Builders will provide coordination and management services, while CNECC Engineering will carry out the construction work and bear the project costs, liabilities and execution risks. Tanco’s profit from the project is limited to the fee agreed under the consortium agreement, but the fee amount was not disclosed.

Implications for operations and market sentiment

The consortium between Tanco Builders and CNECC Engineering was formed in December 2025 to pool resources to bid for logistics warehouse and large-scale storage construction projects in Malaysia. Under the collaboration, Tanco Builders will lead negotiations, stakeholder coordination and project management, while CNECC Engineering will contribute technical expertise and resources spanning value engineering, procurement, construction and commissioning, and may also provide a corporate guarantee for project completion.

CNECC Engineering is primarily involved in building construction and project management. In the market, Tanco shares fell half a sen, or 3.33%, to 14.5 sen at the time of writing, bringing its market capitalisation to RM889.4 million, while the stock has declined more than 80% over the past year.

In our earlier coverage of the launch of Menarabena, we examined Menara Asia’s efforts to digitise the construction supply chain through a B2B platform that connects contractors with building materials suppliers and consolidates certification, documentation and compliance information. The article also highlighted the role of collaboration with CIDB in streamlining the approval process and ensuring continued compliance with product standards, with the aim of improving procurement efficiency without replacing existing certification requirements.

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