Construction company Koh Brothers Group has finished building its precast plant in Iskandar Malaysia and expects to start full operations before the end of the year.
The $13 million plant will double the company's annual precast production capacity to about 150,000 cubic metres.
Koh Brothers operates three precast plants in Singapore with a total annual production capacity of 75,000 cubic metres - equivalent to 2,300 to 2,500 HDB units.
"The establishment of our new plant in Malaysia is timely, in view of the Singapore Government's intention to ramp up housing supply," said Koh Brothers chief executive Francis Koh on Wednesday. He said the decision to have another precast plant was made "when the Government announced the intention to ramp up housing supply to 90,000 private units and 110,000 public homes by 2016".
Koh Brothers chose the plant's Senai location as many precast producers and related suppliers are based there, providing a network that the company can tap. "Recently, we've had a lot of meetings with other precast manufacturers with whom we can work," said Mr Koh.
The plant, owned by the company's building materials unit G & W Group, has six production lines served by 12 gantry cranes.
These can manufacture a full range of precast components for residential and industrial buildings and infrastructure such as columns, beams and facades.
The plant includes a dormitory that can accommodate more than 100 workers. The overall planning and control of the plant will be linked digitally with the main plant at Tampines so the equipment and activities can be managed from Singapore, Mr Koh said."The new plant's close proximity to our headquarters in Singapore ensures highly efficient supply-chain management.
"Not only will the new plant enhance our productivity, but it will also bring greater cost efficiencies and therefore potential margin improvements."
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