KUALA LUMPUR (April 5): Malaysian Resources Corp Bhd (MRCB) will build a RM56.8 million cold storage processing and distribution centre in Kajang, Selangor, for the Giant retail chain.

MRCB's wholly-owned subsidiary MRCB Builders Sdn Bhd today signed a contract with GCH Retail (M) Sdn Bhd, through Jupiter Lagoon Sdn Bhd, a wholly-owned subsidiary of Hong Kong-based Dairy Farm International Holdings Ltd and an associate of GCH Retail.

GCH Retail operates the Giant chain of hypermarkets and supermarkets in Malaysia.

The 140,000 sq ft processing and distribution centre will be built on a five-acre site in Kajang. The distribution centre will be built on a 12-month fast track basis and is expected to be completed in August next year.

Speaking to reporters after the signing ceremony, GCH Retail regional director for Malaysia and Brunei Datuk Tim Ashdown said it is an important development for the group as it currently has a small fresh food facility measuring 40,000 sq ft in the country.

"This will allow us to control the supply chain much more actively," he said, adding that the new facility will further bring down the cost of logistics and deliver lower prices to its customers.

Ashdown also said the group plans to open five new Giant stores this year.

Over the years, MRCB has constructed 12 Giant outlets in Malaysia, valued at over RM500 million. A RM52 million outlet in Setapak here is set to be delivered this month.

MRCB shares closed unchanged at RM1.23 in the morning session with 259,300 shares traded, for a market capitalisation of RM2.2 billion.