Industronics to co-develop RM15.36 bil Kedah Aerotropolis project
04 Nov 2022
Industronics Bhd has entered into a Memorandum of Understanding (MOU) with Malaysian NGV Bhd (MNGC) to build and operate the Kedah Aerotropolis project worth 3.3 billion euros (or RM15.36 billion).
In a filing with Bursa Malaysia on Friday, Industronics said the proposed development will be built on 9,154.98 acres of land belonging to the Kedah State government.
The development consists of three key components, namely the Airport City — consisting of cargo terminals, MRO (maintenance, repair and overhaul) centre and Kulim International Airport — as well as a business park and the Sidam Logistics, Aerospace and Manufacturing (SLAM) hub.
The first phase of the project is Airport City which is targeted to be completed in 18 months.
“The proposed development is massive, and through this collaboration with MNGV, we will be part of the development of important infrastructure in Malaysia,” said Industronics executive director Datuk Chu Boon Tiong.
Under the MOU, MNGV will continue to attend and liaise with KXP Airportcity Holdings, a subsidiary of the Kedah State Development Corp and other related parties to secure the proposed development.
Meanwhile, Industronics will secure financing and facilitate funds from the domestic or international market to fund the project’s land and building costs.
According to Chu, Industronics will seek funds and facilitate funds amounting to 3.3 billion euros with its strategic partner, Bluemount Financial Group Ltd and other possible investors for the development.
Chu has acquired a 10% stake in Bluemount, and the group also expressed interest in investing in Bluemount last year.
Shares of Industronics gained 25% to 10 sen, giving the company a value of RM43.75 million.
Source: The Edge Markets