Muhibbah Engineering gets RM100m contract for chemical complex

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KUALA LUMPUR (Sept 02): Muhibbah Engineering (M) Bhd has been awarded a RM100 million contract for the construction, fabrication and installation of the new Aroma Chemical Complex and the relevant plants and facilities for the Lemongrass Project in Kuantan.

In an announcement to Bursa Malaysia today, Muhibbah Engineering said the contract was awarded by BASF Petronas Chemicals Sdn Bhd — a joint venture between German-based chemical company, BASF SE, and Petronas Chemicals Group Bhd.

“The new Aroma Chemical Complex will comprise of one production building and other facilities,” said Muhibbah Engineering.

It said the scope of the contract work includes the construction work for all commodities; civil, structural steel erection, architectural and sheeting, piping, mechanical, insulation, painting, electrical, instrumentation, scaffolding, warehousing, heavy lift, heating, ventilation, and air conditioning (HVAC), as well as pre-commissioning.

“Additional scope could include commissioning and startup support, and will be determined at a later date,” it said, adding that the construction works will commence immediately and is estimated to be completed in two years.

The contract is expected to contribute positively to the earnings and net assets of Muhibbah Group for the current and future financial years, it added.