CBIP unit wins RM131.7mil contracts

PETALING JAYA: CB Industrial Product Holding Bhd’s (CBIP) palm oil mill unit, PalmitEco Engineering Sdn Bhd, has won four palm oil contracts worth RM131.7mil to build a palm oil mill, kernel crushing plant, biogas power-generating plant and sterilisation palm oil mill.

In a filing with Bursa Malaysia, CBIP said three contracts worth RM86.95mil were accepted in November last year from PT Kodeco Agrojaya Mandiri, with a contract period of 16 months.

The contracts are for building and maintaining one unit of conventional palm oil mill with a capacity of 60 tonnes of fresh fruit bunches (FFB) per hour; one unit of kernel crushing plant with a capacity of 200 tonnes per day; and one unit of 1,600KW biogas power-generator plant.

Earlier this month, the group had also secured a contract worth RM44.74mil to build a sterilisation palm oil mill with a capacity of 45 tonnes of FFB per hour within 18 months.

PalmitEco Engineering had inked an agreement with PT Sanjung Makmur for the mill, which includes designing, manufacturing and installing.

“None of the directors or major shareholders of the company or persons connected to them have any interest, direct or indirect, in the contract,” CBIP noted.

The group expects the contracts to contribute positively to its earnings and net assets per share for the financial year ending Dec 31, 2019 until the completion of the contractual works.

“The company does not foresee any exceptional risk, other than the normal operational risk associated with the contract,” CBIP said.