ABG approves additional capital for modular construction unit

LISTED Asiabest Group International, Inc. (ABG) has approved an additional P70-million capital infusion into its wholly owned subsidiary, ABG Modular Development Corp., as the company expands its modular construction business.

In a statement on Monday, ABG said its board approved the additional investment on top of its initial P10-million subscription to ABG Modular. The board also approved an increase in the subsidiary’s authorized capital stock to P300 million from P100 million.

“ABG Modular represents a major step in ABG’s transformation into a vertically integrated supply, logistics, and manufacturing platform,” ABG Investor Relations Officer Jan Michael Lim said.

“With modular construction gaining traction globally and locally, we are building the capabilities needed to deliver projects faster, more efficiently, and at scale while creating long-term value for our shareholders,” he added.

ABG Modular was established to design, manufacture, and deploy prefabricated concrete modular structures (PCMS) for education, housing, and community development projects.

The company said the additional capital will be used to expand manufacturing capacity through new formworks, molds, and production equipment; invest in automation technologies; support housing demonstration projects; and strengthen working capital.

As previously disclosed, ABG Modular will work with Concrete Stone Corp. (CSC), a precast concrete and aggregates producer, to support manufacturing and project delivery.

ABG Modular said it is evaluating opportunities in the residential sector and pursuing projects in tourism and hospitality as it expands the use of its PCMS technology. Several residential initiatives are under evaluation, while resort and villa developments are being explored.

“From classrooms and housing to tourism developments and community facilities, we see modular construction becoming an increasingly important part of the country’s development agenda,” Mr. Lim said. “ABG Modular is being built to meet that demand with speed, quality, and scalability.”

The company said prefabricated classrooms using PCMS technology were installed at Mariveles National High School-Cabcaben Annex in Mariveles, Bataan, demonstrating modular construction’s potential to help address the country’s classroom backlog through faster project delivery.

ABG also cited growing interest in modular construction as developers seek to shorten construction timelines and improve project planning and execution. — Alexandria Grace C. Magno