Japan SHO-BOND, Thai partner to start JV to meet aging infrastructure needs in Southeast Asia
BANGKOK, NNA - Japan’s SHO-BOND & MIT Infrastructure Maintenance Corp. (SB&M) and Thailand’s Concrete Products and Aggregate Co. (CPAC) will establish a joint venture to capture growing maintenance demand for aging infrastructure in Thailand and expand the business in the region.
The joint venture, CPAC SB&M Lifetime Solution Co., is expected to be set up in Bangkok in October with CPAC holding a 51 percent stake and SB&M, which is a joint venture between SHO-BOND Holdings Co. and Mitsui & Co., owning the remaining 49 percent.
Capital for CPAC SB&M Lifetime Solution is expected to total 150 million baht ($4.8 million) and operations are likely to start in the fourth quarter of 2020.
“The aging of critical infrastructure is a global issue, but it is also becoming increasingly prevalent in Southeast Asia,” said SHO-BOND Holdings in a press release Tuesday.
“This trend is creating strong potential demand for appropriate structural maintenance services from CPAC’s customer base, as well as related industries and academic institutions,” it added.
The new joint venture firm will offer maintenance services for mainly public infrastructure including bridges, roads, railways, ports and buildings by utilizing the expertise of SHO-BOND Holdings, which specializes in repairing and reinforcing social infrastructures. They will also develop repair methods to meet local needs.
CPAC is a wholly subsidiary of the Siam Cement Group. The joint venture also aims to utilize Mitsui’s global network and expertise in overseas business operations to broaden its reach in Southeast Asia.