KUALA LUMPUR (April 11): A subsidiary of Fitters Diversified Bhd has been appointed the strategic supplier of specialized pipes for Felda Water Sdn Bhd’s RM57.9 million project involving Orang Asli villages in Pahang.

Molecor (SEA) Sdn Bhd was appointed following the inking of a collaborative Memorandum of Understanding between Molecor and Felda Water to explore and co-operate in the application and use of HYPRO PVC-O pipes in water and wastewater projects in Malaysia and the region.

Felda Water — a wholly-owned subsidiary of Lembaga Kemajuan Tanah Persekutuan (FELDA) — was awarded a contract by the Energy, Green Technology and Water Ministry to install and commission approximately 80km of main and distribution pipelines to supply treated water to 14 Orang Asli villages throughout five districts in Pahang.

In a statement today, Fitters said the project is expected to contribute positively to the group’s performance for the financial year ending December 2018. “The business activities that will be carried out under this co-operation are expected to be a source of stable recurring revenue for Fitters.”

Molecor SEA and Felda Water will enter into more binding agreements in the future for the purposes of further collaboration in respect of the MoU.

Fitters managing director Datuk Richard Wong said Molecor’s HYPRO pipes have higher impact resistance and a longer lifespan of up to 50 years, compared with the 30-year lifespan of conventional steel-based pipes. They are also resistant to corrosion and natural chemical substances, providing superior structural strength and are lighter than conventional pipes resulting in cost savings in handling as well as easier and faster installation. The pipes are manufactured in a RM120 million plant in Gebeng, Pahang, under the East Coast Economic Region initiative.

Wong said the MoU gives the company further traction to support its rollout of water and wastewater infrastructure projects nationwide.

“We are proud that HYPRO PVC-O pipes have today been installed in a number of projects including Sarawak, Sabah, Kedah, Terengganu, Pahang, Kelantan and Johor. These would be catalysts to HYPRO PVC-O's further acceptance by industry players as a viable alternative for facilitating large-volume water infrastructure, in line with rapid economic development.”

Felda Water is primarily engaged in the carrying out of infrastructure works in water treatment, drainage and sewage, organic waste treatment and industrial wastage, apart from developing complete and comprehensive underground water and drainage systems.

Fitters shares closed unchanged at 40.5 sen, giving it a market capitalisation of RM173.75 million.