CB Industrial bags palm mill contract worth RM51m in Indonesia

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KUALA LUMPUR (Dec 7): CB Industrial Product Holding Bhd has bagged a contract worth RM51.08 million from PT Ichtiar Gusti Pudi, a subsidiary of Ahmad Zaki Resources Bhd, to supply one continuous sterilisation palm oil mill with a capacity of 60 tonnes per hour.

In a filing with Bursa Malaysia today, CBIP said its unit Modipalm Engineering Sdn Bhd received the letter of award (LoA) for the project last Friday (Dec 4) from PT Ischtiar Gusti.

Under the contract, CBIP is tasked to supply the palm oil mill at Kabupaten Landak, Kecamatan Ngabang, Kalimantan Barat, Indonesia.

The contract is made up of both local and import portions, with the local being IDR76.2 billion (RM22.98 million) and the import portion worth US$6.73 million (RM28.09 million), the filing read.

"The LoA is expected to contribute positively to the earnings of CBIP Group for the financial years ending Dec 31, 2016 (FY16) and 2017 (FY17)," it added.

Shares in CBIP closed four sen or 1.99% higher at RM2.05 today, for a market capitalisation of RM1.07 billion.

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