KUALA LUMPUR: Kelington Group Bhd's wholly-owned subsidiary, Kelington Engineering (S) Pte Ltd, has clinched a contract worth RM110 million to provide Ultra High Purity (UHP) solutions for a wafer production facility in Singapore.
The integrated engineering solutions provider said the contract was awarded by a global leader in engineering and project management of high-technology facilities who has been appointed as the contractor of the end-customer.
The Germany-based end-customer is one of the leading manufacturers of silicon wafers which are a key component in semiconductor chips.
Under the contract, Kelington will undertake the bulk and speciality gases distribution system works for the end customer's new manufacturing facility in Singapore.
The project will commence immediately from December 2021 and is slated for completion by May 2023.
Kelington chief executive officer Ir Raymond Gan said the company has significantly benefitted from the robust growth of the semiconductor industry in 2021 as global players accelerate their capacity expansion plans to meet the strong rise in demand for semiconductor chips.
"The UHP equipment for this project will be fabricated and supplied by the company's wholly-owned indirect subsidiary, KE System Integration (Chuzhou) Co Ltd in China.
"This demonstrates that our in-house fabricated equipment is recognised and certified for use in an advanced wafer production facility.
"We believe this will elevate our value chain in the industry as well as our profitability moving forward.
"Notably, as Singapore is one of the most attractive destinations for technological investments globally, our Singapore operations have been one of the key contributors in terms of project flows over the past several months," he said in a statement today.
On top of this RM110 million contract win, Kelington has also secured several other UHP contracts in Singapore totalling RM66.3 million over the past few weeks alone.
This brings the total value of new contracts secured in recent weeks to RM176.3 million.
These contracts are for works to be undertaken for different end customers at some of the most advanced semiconductor facilities in Singapore, it said.
Kelington said the cumulative value of new contracts clinched this year has reached an all-time high of RM1.184 billion, lifting the company's current outstanding orderbook to RM1.225 billion.
Gan said looking ahead, the company remained optimistic on its prospects, underpinned by its robust project pipeline across operating markets in Malaysia, Singapore and China.
"Our tender activities also continue to remain active and by leveraging on our strong market position, we are well-poised to capture more business opportunities.
"Not resting on our laurels, we will continue stepping up our efforts to secure more projects in the coming months while delivering high-quality output to our customers in a timely manner," he added.