Israel Construction Co to Expand into Southeast Asia
Published By : 03 Jun 2015 | Published By : QYRESEARCH
Danya Cebus Construction, based in Israel, is planning to expand into Southeast Asia by establishing a 49:51 share joint venture with Thailand based Major Development Plc. The targeted value of construction projects is pegged at Bt3 billion to Bt5 billion annually. TMDC Construction Co, the joint venture, has a registered capital of Bt100 million.
Danya Cebus is a subsidiary of Africa Israel Investments and was listed in 2000 on the Tel Aviv Stock Exchange. The construction company presently operates in Russia, Israel, and Romania. Last year, the company earned US$ 21.4 million (or Bt723 million) on a revenue of US$736.4 million. Denya Cebus featured in the list of the “Top 100 leading Israeli companies” by DUN’S 100.
Ronen Ginsburg, chief executive officer of Denya Cebus Construction addressed a press conference on Tuesday, telling reporters that this was the first time the company has expanded into Southeast Asia. The company foresees strong demand for construction stemming from this region when the Asean Economic Community comes into effect in December. Ronen Ginsburg added that Asean countries are in need of developing their buildings and infrastructure and they chose Thailand to be their Asean headquarters.
For the first three years, TMDC Construction Co will focus solely on the private sector, aiming to work on the construction of three to five office buildings, condominiums, retail buildings, or hotels, the value of which will amount to Bt3 billion to Bt5 billion per year. The company will then establish consortiums to jointly bid on projects in the public sector.