Tiong Seng Holdings has signed joint venture (JV) agreement with two listed Japanese companies to manufacture and supply precast tunnel segments for the Singapore and Malaysia markets. The deal was signed behind closed doors at Pan Pacific Hotel between Tiong Seng's unit, Robin Village International; Geostr Corp, as well as Marubeni-Itochu Steel Pte Ltd. The JV company will be owned by Tiong Seng, Geostr and Marubeni-Itochu in a 44:51:5 proportion. It plans to invest about $14.5 million to set up a manufacturing facility on Tiong Seng's existing precast plant in Iskandar, Malaysia.

The JV's plant will occupy about a third of this facility, which sits on a 5.57-hectare plot. Geostr will provide the expertise in making tunnel segments, which requires more stringent precision and quality than the precast segments Tiong Seng is used to making for the construction of buildings. The JV will also leverage on Marubeni's distribution network.

The JV will sell the precast segments it makes to the contractors involved in MRT construction projects. Tiong Seng itself will likely also purchase precast segments from the JV for the $316 million contract it recently clinched to build the Great World Station and tunnels along the Thomson Line.