Kel­ing­ton unit bags RM65.4mil China con­tract

The Star Malaysia - StarBiz - - News -

KUALA LUMPUR: Kel­ing­ton Group Bhd‘s unit has se­cured a RM65.4mil con­tract to sup­ply and in­stall a bulk gas sys­tem and dis­tri­bu­tion pip­ing for Gexi (Chengdu) In­te­grated Cir­cuit Man­u­fac­tur­ing.

The en­gi­neer­ing ser­vices com­pany said its unit Kel­ing­ton En­gi­neer­ing (Shang­hai) Pte Ltd, had re­ceived the con­tract from Chengdu Con­struc­tion En­gi­neer­ing Cor­po­ra­tion.

Work will start im­me­di­ately and tar­geted to be com­pleted by April 2018.

Gexi (Chengdu) is a joint ven­ture be­tween world­wide semi­con­duc­tor wafer foundry leader Glob­alFoundries and the Chengdu mu­nic­i­pal govern­ment.

“We are ben­e­fit­ing from the growth of the semi­con­duc­tor in­dus­try in China which is largely driven by the “Made in China 2025” ini­tia­tive to in­crease China’s pro­duc­tion of elec­tron­ics and semi­con­duc­tor prod­ucts.

“This new con­tract adds sig­nif­i­cant cre­dence to our grow­ing cus­tomer pro­file of high tech clients who are set­ting up new plants in China, which in­clude Semi­con­duc­tor Man­u­fac­tur­ing In­ter­na­tional Corp, Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Com­pany and United Mi­cro­elec­tron­ics Corp, to name a few,” said Ray­mond Gan, CEO of Kel­ing­ton.

Kel­ing­ton added that the works would be funded through in­ter­nally gen­er­ated funds and bank bor­row­ings.

The com­pany said the con­tract rep­re­sents the sin­gle largest one it has se­cured this year and that year-to-date, it has se­cured up to RM246mil worth of new orders, bring­ing Kel­ing­ton’s cur­rent out­stand­ing or­der book to RM271mil. Kel­ing­ton ex­pected the con­tract to con­trib­ute pos­i­tively to its earn­ings and net as­sets for the fi­nan­cial years end­ing Dec 31, 2017 and 2018.

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