CBIP bags RM48.58m palm oil mill job in Indonesia

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KUALA LUMPUR (April 29): CB Industrial Product Holdings Bhd (CBIP) has bagged a RM48.58 million job to build a continuous sterilisation palm oil mill with a processing capacity of 45 metric tonnes of fresh fruit bunches per hour. 

Its wholly-owned PalmitEco Engineering Sdn Bhd, together with its 95%-owned PT CB Polaindo, entered into three contracts with Indonesian plantation company PT Nabire Baru on April 24, to undertake the job.

Under the contracts, PalmitEco will manufacture, fabricate supply and deliver to site, the machinery, equipment, apparatus and materials needed to construct, erect, install and commission the mill for RM21.26 million.

PT CB Polaindo meanwhile, will carry out the installation, testing and commissioning of the mill for IDR21.81 billion or RM6.35 million. It will also carry out all earthworks, civil works and piling works for the project for IDR72.06 billion or RM20.97 million.

The contracts are expected to be completed by April 30 next year, CBIP said. 

CBIP anticipates these contracts will contribute positively to its earnings and net assets for its financial year ending Dec 31, 2019 (FY19)onwards, until completion of all works. 

CBIP shares closed two sen or 1.75% higher at RM1.16 today, giving it a market value of RM591.31 million. In the past one year, the stock has retreated 19.41%.