23-03-2006: IJM sees more construction revenue from overseas

IJM Corporation Bhd expects its overseas construction jobs to contribute more to the group’s total revenue in the coming years.

“About 50% of our current RM3 billion construction order book is from overseas and the contribution to the group’s total construction revenue is expected to increase, provided we do not land any substantial local contracts,” IJM managing director and CEO Datuk Krishnan Tan Boon Seng said.

Speaking to reporters after IJM’s corporate presentation at the Invest Malaysia 2006 conference on March 23, he said local jobs currently accounted for 70% of IJM’s construction revenue. The current order book is expected to last for the next two-and-a-half-years.

On the performance its unit Industrial Concrete Products Bhd (ICP), Tan said the company had managed to boost its exports to 20% from 1% of its production within a short period of time.

“It had also completed its plant in China and begun supplying to its customers,” he said.

However, Tan said ICP’s performance was affected during the last nine months mainly due to the rise in fuel prices.

Tan also dismissed suggestions that the company would sell IJM Plantations Bhd. Market talk has it that IOI Corp Bhd was interested in IJM Plantations.

“It’s unlikely we would sell IJM Plantations. It’s a good business and we have done a reasonably good job,” he said.

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