IJM’s Automation Leap: How a RM300 Million Plant is Redefining Construction Competitiveness

IJM Corp Bhd is making a decisive move to future-proof its construction arm through significant investment in automation. The conglomerate’s newly commissioned automated spun pile plant at Industrial Concrete Products’ (ICP) Bestari Jaya factory (ICP BJF) is not just an expansion of capacity; it is a strategic overhaul designed to lower production costs, enhance operational efficiency, and strengthen IJM’s bid for large-scale, high-tech infrastructure projects.

The impact of this investment has been recognized by the market, with CIMB Research maintaining its “buy” recommendation on IJM Corp and an unchanged target price of RM2.95. Following a site visit to the new facility, the research house highlighted that the plant significantly bolsters IJM’s industry division, expanding ICP Piles’ annual production capacity from approximately 1.8 million tonnes to over 2.2 million tonnes. The project, which includes land acquisition, represents an investment of roughly RM300 million.

The Competitive Edge of Industry 4.0
According to CIMB Research, automation is the plant’s primary competitive advantage. The facility incorporates cutting-edge Industrial Revolution 4.0 technologies, including fully automated bar-cutting and cage-making systems, machine-assisted spinning processes, and precision bar placement systems. A centralized digital platform enables predictive analytics, while integrated sludge management systems ensure environmental compliance.

The financial implications are substantial. CIMB estimates that ICP BJF will achieve production costs that are 5% to 10% lower than conventional baselines. This efficiency is primarily driven by a 40% rationalization of labor through automation, reducing reliance on manual workforce constraints and improving consistency in output.

Strategic Integration for Data Centres and Advanced Manufacturing
Beyond immediate cost savings, the new plant serves as a critical strategic asset within IJM’s integrated construction ecosystem. Located just 8km from IJM’s SMART Industrialised Building System (IBS) facility, the Bestari Jaya plant allows for the seamless integration of spun pile production with IBS precast solutions.

This proximity enables faster project execution and offers clients a comprehensive, end-to-end construction solution. In an era where speed and precision are paramount, this integrated offering strengthens IJM’s ability to secure bids for large-scale, time-sensitive projects, particularly in the booming sectors of advanced manufacturing facilities and data centres (DCs). As Malaysia positions itself as a regional DC hub, the demand for rapid, high-quality foundational work has never been higher, and IJM is positioning itself to meet this challenge head-on.

A Blueprint for Future Growth and ESG Leadership
CIMB Research views ICP BJF as a potential blueprint for upgrading ICP Piles’ other facilities through digitalization and automation. With 13 production lines across nine facilities nationwide and a history of supplying nearly 40 million tonnes of spun piles since 1977, IJM has the scale to replicate these efficiencies across its network, further reinforcing its leadership in the Malaysian spun pile market.

The plant also aligns strongly with IJM’s Environmental, Social, and Governance (ESG) agenda. Equipped with solar panels capable of generating up to 3.22MW, along with natural curing processes, rainwater harvesting, and concrete recycling initiatives, the facility is expected to deliver annual utility savings of approximately RM1.1 million.

International Footprint and Financial Outlook
IJM’s domestic advancements are supported by a robust international presence. ICP Piles has exported to more than a dozen markets, including Singapore, Brunei, Indonesia, Vietnam, Saudi Arabia, the United Kingdom, Canada, and the United States. Its portfolio includes landmark projects such as Gardens by the Bay in Singapore, the Temburong Bridge in Brunei, and the Shebara Resort in Saudi Arabia.

Financially, the industry division is becoming an increasingly vital pillar of IJM’s earnings. For the financial year 2026 (FY26), CIMB Research forecasts that the industry division will contribute RM208 million, or 31%, of IJM’s core pre-tax profit. This underscores the segment’s growing importance to the group’s long-term earnings outlook and validates the strategic wisdom of investing heavily in automation and integrated construction capabilities.