Megawide Construction Corp. expects its precast business to lift its profitability in the immediate to long-term with the construction of two underground stations of Metro Manila Subway Project in Ortigas and Shaw Boulevard, a top executive said Friday.
The company’s precast solutions is an emerging growth segment, expanding its share to 10 percent of Megawide’s total construction revenues in the first six months of 2022 from 5 percent over the past three years.
The company said given the higher margins from this business, its increasing contribution would further shore up its profitability.
“Precast and other innovative methodologies are increasingly vital in our industry as we take on more and increasingly complex infrastructure projects. We are seeing the practical application of our vertical integration in large infrastructure projects such as MMSP and we are confident it can be replicated in other projects too,” said Megawide chairman and chief executive Edgar Saavedra.
Tokyu-Tobishima Megawide Joint Venture recently secured a contract from the government to build two underground stations and tunnels of MMSP or Contract Package 104.
Megawide said to serve the unique requirements of the MMSP, its existing precast plant would have an entirely new line dedicated to the production of CP-104’s tunnel lining segment and, prospectively, may also serve other portions of the MMSP.
The joint venture of Megawide and Tokyu Construction’s Tunnel Prefab Corp. will use the facility.
Megawide inaugurated its second precast plant to expand its capacity for more modular designs, such as walls and columns, required for vertical developments and affordable housing segments.
The original plant caters to more customized molds and is best suited for horizontal infrastructure projects, producing parapets and half slabs, which were used for LRT-1 and Skyway Stage 3, respectively.
“These two plants will augment our total precast capacity and complement each other to ensure efficiency, diversity and speed-to-market in our operations,” said Megawide executive vice-president for precast and construction solutions unit Markus Hennig.