Kelington secures gas system, piping job in China worth RM65m
Kelington Group Bhd
has secured a contract worth 102.62 million renminbi, equivalent to RM65.4
million, from Chengdu Construction Engineering Corporation to supply and
install bulk gas system and distribution piping for an integrated circuit
manufacturing systems project in Chengdu, China.
Kelington, the contract was awarded to its wholly-owned subsidiary Kelington
Engineering (Shanghai) Pte Ltd, which specialises in providing engineering
benefitting from the growth of the semiconductor industry in China which is
largely driven by the ‘Made in China 2025’ government initiative to increase
China’s production of electronics and semiconductor products,” Kelington
chief executive officer Raymond Gan said in a media statement today.
“The works will be
commenced immediately and is expected to be completed by April 2018,”
Kelington said in a filing with Bursa Malaysia today, adding that the works
will be funded through internally generated funds and bank borrowings.
It is worth noting
that the integrated manufacturing systems project is owned by US-headquartered
semiconductor wafer foundry firm GlobalFoundries and Chengdu Municipal
Government in China.
On Feb 10,
GlobalFoundries announced that it is investing over US$10 billion to build a
manufacturing plant in Chengdu Hi-tech Industrial Development Zone in China, to
produce a 12-inch wafer — a semiconductor wafer used in integrated circuits.
The plant in Chengdu
was said to commence its operations beginning from the fourth quarter of 2018.
At noon break, shares in
Kelington rose 2.5 sen or 3.91% to pause at 66.5 sen today, valuing the
engineering services provider at a market capitalisation of RM152.84 million.
Source: The Edge Markets