This article first appeared in The Edge Financial Daily on April 28, 2017

KUALA LUMPUR: Pipe manufacturer Engtex Group Bhd’s order book grew to RM170 million as at March 31, 2017 after the company secured five pipe supply contracts worth RM60 million in the first quarter of 2017.

In a statement yesterday, Engtex said most of these contracts are set to be recognised in the financial year ending Dec 31, 2017 (FY17).

Engtex group managing director Datuk Ng Hook said the company is tendering for more than RM300 million worth of projects nationwide.

He said these include new pipe supply contracts for residential and infrastructure projects.

Ng said the company was optimistic about beefing up its order book to sustain its financial performance for the rest of the year.

He said the group’s mild steel (MS) pipe plant in Serendah, Selangor, and ductile iron (DI) pipe plant in Kuantan, Pahang, have sufficient capacities to fulfil the outstanding order book.

“Our MS pipe plant has a production capacity of 42,000 tonnes per annum, with utilisation rate of about 70% as at Dec 31, 2016.

“This has since been expanded to 66,000 tonnes per annum in early 2017, with capital expenditure of RM7 million. The MS plant’s ample capacity, ability to produce the largest-diameter MS pipe of 3,020mm, and strategic location in the Klang Valley make us well placed to supply our pipes to the vast number of ongoing developments in a timely manner,” he said.