business

Kelington Group bags two new contracts worth RM262mil

KUALA LUMPUR: Kelington Group Bhd has bagged two new contracts totaling approximately RM262 million.

In a statement today, the integrated engineering solutions provider said the first contract was via its wholly-owned subsidiary, Kelington Technologies Sdn Bhd, to provide turnkey design and build services for a bulk liquid terminal in Port Klang, Malaysia from a leading provider of bulk liquid storage services.

Valued at approximately RM170 million, the contract will commence in November 2022 and is slated for completion by October 2024.

The second contract, worth approximately RM92 million, was clinched by its wholly-owned subsidiary, Kelington Engineering (Shanghai) Co Ltd, to undertake the material supply and installation of a bulk gas delivery system for a semiconductor plant in Beijing, China.

Kelington said the contract was awarded to an integrated design and manufacturing company specialising in dynamic random-access memory.

It lasts ten months, commencing in November 2022 and ending in September 2023.

Adding these two contracts brings Kelington's new orders secured year-to-date to RM1.62 billion, which has surpassed last year's total new orders secured of RM1.19 billion and sets a new record for the company in terms of the highest value of new contract wins in a year.

This elevates Kelington's current outstanding orderbook to RM2.22 billion.

Chief executive officer Ir Raymond Gan said the company continues to work hard to maintain its growth momentum by winning new contracts across key operating markets.

"These two new contracts demonstrate our established track record to secure process engineering and ultra-high purity related projects from reputable international corporations across the non-semiconductor and semiconductor industries.

"Supported by our strong orderbook, we are confident of delivering a favourable financial performance in the coming years," he said.

The two contracts are expected to contribute positively to the earnings and net assets of the company for the financial years ending December 31, 2023, and 2024.

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