HLH Agriculture (HLHA), the wholly-owned subsidiary of Hong Lai Huat, has entered into a joint cooperation term sheet with Joe Green.

 

The joint cooperation grants the right to Joe Green&rsquo s licensee to develop a light-weight concrete panel manufacturing plant in the construction material zone located in HLHA&rsquo s Aoral Eco City project in Cambodia.

 

HLHA had, on March 9, obtained the in-principal approval to develop an Eco-City on its existing plot of land that&rsquo s located some 100km away from Cambodia&rsquo s capital Phnom Penh.

 

Joe Green is a manufacturer of environmentally-friendly light-weight precast concrete hollow core wall panels for use in the building and construction industry.

 

Under the agreement, HLHA will grant Joe Green the right to use 20,000 sqm of land located in its Aoral Eco-City project to develop, build and operate the manufacturing plant. The cooperation period will last for three years from the date of the agreement, with the option to extend.

 

The agreement will also see Joe Green supplying the light weight concrete panel for Hong Lai Huat&rsquo s ongoing property and real estate project that&rsquo s currently under construction in Cambodia.

 

The setting up of the strategic partnership will also create more job opportunities for locals, says Hong Lai Huat.

 

&ldquo We are pleased to welcome Joe Green, a pioneer with many years of experience in the light weight concrete panel industry as the first company to enter into our Aoral Eco-City project. We believe that this partnership shall be mutually beneficial to both the group and Joe Green as Cambodia&rsquo s property and real estate industry is still rapidly developing and growing at an extremely fast pace,&rdquo says Hong Lai Huat&rsquo s group general manager and executive director Ong Jia Jing.

 

&ldquo Hong Lai Huat has many years of experience in the construction, property and real estate industry since 1988 and especially they have been in Cambodia since 2008. This gave us the confidence to partner with Hong Lai Huat and we look forward to establishing our base in the Aoral Eco-City for many years to come,&rdquo adds Boediman Widjaja, managing director of Joe Green.

Hong Lai Huat Group has triggered a query from Singapore Exchange Regulation (SGX RegCo) after its share price rose to 13.6 cents, up 4.3 cents or 46.2% higher from last close of 9.3 cents on March 16.

 

SGX RegCo, via a filing on SGX at 9.13am, asked Hong Lai Huat if it had any information that could have led to the unusual price movements, and asked the company to confirm its compliance with Mainboard rule 703.