BATU Caves: The MTD group, which is targeting to take its units - Metacorp Bhd and MTD Infraperdana Bhd - private by the first quarter 2009, plans to consolidate its other operations to remain lean during these tough times in the construction industry.

The Malaysia conglomerate's core businesses involve construction and civil engineering works, infrastructure and property development and manufacturing of construction-related materials and solid waste management.

Managing director Datuk Azmil Khalid said it would continue to work on its existing projects but did not plan to venture into new projects, especially overseas.

"Currently, we have an order book of RM2.5bil which will keep us busy for some time," Azmil told reporters after the launch of the MTD group?s headquarters in Batu Caves yesterday.

Asked if the construction company was impacted by rising costs of raw materials, he said: "We will definitely be affected but hopefully not significantly."

Azmil said the impact would be shown in the company's financial year ending March 31, 2009.

However, he said, the MTD group's move to consolidate its operations should help to mitigate the downturn in the construction industry as a result of rising costs, especially in steel, cement and other building materials.

Meanwhile, in a filing to Bursa Malaysia yesterday, MTD Construction Sdn Bhd (MTDC) had on July 4 been served with the writ of summon and statement of claim from Tenaga Nasional Bhd (TNB) solicitor alleging that MTDC and/or agent and/or employees had negligently caused damage to TNB's 33KV power cables during the roadwork and excavation near Plaza Phoenix.

MTDC is a subsidiary of MTD ACPI Engineering Bhd, a unit of MTD Group.

MTDC categorically denied liability for any damages to the underground electrical cables and further stated that the amounts claimed by TNB for the alleged loss and damage were grossly inflated and without basis.