Local developer MECOM Power and Construction has reached an initial agreement to purchase the land rights for a 133,200 square meters plot in Xinhui District, Jiangmen in which it intends to develop a research and manufacturing base for developing new materials and equipment for its construction and energy businesses.
The land costs, construction costs and other expenses (including costs for equipment purchase, research and development human resources and business promotion) to be incurred in relation to the development of the land and the manufacturing facilities was estimated to be RMB625 million (MOP784.1 million/US$97.8 million).
‘The land will be used for the purpose of setting up manufacturing facilities for the fabrication and/or processing of structural steel components that are generally used in the Group’s construction and fitting out works in its ordinary and usual course of business, and the research and manufacturing base for developing new materials and
equipment for other new energy businesses,’ chairman Kuok Lam Sek added in a dispatch.
The company entered into the Letter of Intent on October 21 with Gujing Town People’s Government, with the company hoping if it materialises the new facility could provide a manufacturing base for the group’s expansion out of Macau and exploration of other domestic and overseas markets such as the Guangdong-Hong Kong-Macao Greater Bay Area, Southeast Asia and Australia.
‘This will enhance the Group’s business scale, market competitiveness, brand influence and industry status’.