CBIP bags RM105.5m contracts to build 2 palm oil mills

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KUALA LUMPUR (Oct 14): CB Industrial Product Holding Bhd (CBIP) has bagged two contracts collectively worth RM105.5 million to build a palm oil mill in Malaysia and another in Papua New Guinea.

In a statement to Bursa Malaysia this evening, the palm oil mill equipment and parts manufacturer said its wholly owned unit Modipalm Engineering Sdn Bhd has entered into the contracts with Vanimo Green Palm Oil Mill Ltd and Merchong Palm Oil Mill Sdn Bhd on Sept 8 and Oct 13 respectively.

Vanimo Green and Merchong are subsidiaries of the Prosper Group.

As stipulated in the contracts, CBIP will design, manufacture, supply, install, test and commission the civil, mechanical and electrical works for a 60MT/hour Modipalm Continuous Sterilisation palm oil mill.

CBIP will construct one palm oil mill in Papua New Guinea for Vanimo Green, while the other palm oil mill will be constructed in Malaysia for Merchong.

The firm expects the contracts to contribute positively to its earnings for the financial years ending Dec 31, 2015 and Dec 31, 2016.