Kelington unit bags RM65.4mil China contract
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.