KUALA LUMPUR (Nov 1): Fitters Diversified Bhd's subsidiary Molecor (SEA) Sdn Bhd (Molecor SEA) has landed a contract from Pengurusan Aset Air Bhd (PAAB) in an open tender for the supply of water pipes from 2018 to 2020.

In a statement yesterday, Fitters said this was Molecor SEA's first-ever contract award from PAAB.

Fitters said the contract entails the supply of HYPRO® PVC-O pipes with 16 bar pressure rating, ranging from 110 millimetre (mm) to 630 mm in diameter.

It said for a start, the HYPRO® PVC-O pipes will be used to replace aging asbestos cement pipes in Kelantan and Johor.

The group added that the water pipes rehabilitation and replacement programme will be expanded to other states in Peninsular Malaysia in the near future.

Fitters said Molecor SEA would supply the HYPRO® PVC-O pipes over a period of 24 months.

It said the contract commenced on Oct 29, 2018, and is expected to contribute positively to the group's financial performance in the financial years ending Dec 31, 2018 to 2020.

Fitters managing director Datuk Richard Wong said the maiden contract from PAAB represented a major milestone for Molecor SEA.

"This also serves as an excellent opportunity for us to showcase the superior durability, performance, and cost savings offered by our pipes in various operating conditions.

"Additionally, HYPRO® PVC-O pipes are the only water pipe in Malaysia to receive the SIRIM Eco-Label, attesting to our pipes as an environmentally-friendly product free from health hazards," he said.

Wong said since 2015, Molecor SEA has installed over 450 kilometres of HYPRO® PVC-O pipes across 10 states in Malaysia, namely Perlis, Kedah, Perak, Kelantan, Terengganu, Pahang, Negeri Sembilan, Johor, Sabah, and Sarawak.

At 10.08am, Fitters rose 1.28% or 0.5 sen to 39.5 sen with 415,500 shares traded. The stock had earlier risen to a high of 40 sen.