KUALA LUMPUR (Aug 18): Engineering solutions provider Kelington Group Bhd has secured a contract worth approximately RM45 million to undertake specialty gas systems distribution (Ultra High Purity or UHP) works for GlobalFoundaries Inc’s new semiconductor fabrication plant in Singapore.
In a statement, Kelington said the contract was secured from "a global leader in engineering and project management of high-technology facilities", but did not name the client.
“Under the contract, Kelington will be handling the specialty gas system distribution works for the phase one construction of GF’s 300mm wafer fab. The new fab is expected to be the most advanced semi manufacturing facility in Singapore, and its memory solutions will be catered for fast-growing end-markets in the automotive, 5G mobility and secure device segments,” said the group.
The one-year contract will start today and be completed by July 2022, it said, adding that the project is expected to contribute positively to the group's earnings and net assets for the financial years ending Dec 31, 2021 (FY21) and FY22.
According to Kelington, the group has so far secured about RM264 million of new orders in this year, and bolstered its outstanding orderbook to RM523 million as at August 2021, before revenue recognition for the second quarter of 2021.
Kelington's chief executive officer Raymond Gan said the group expects project flow for its UHP business to remain robust, in tandem with the rising adoption of Internet of Things and 5G technology.
“Backed by our strong track record of global clientele, Kelington is well-poised to benefit from the accelerated expansion activities by semiconductor manufacturers across our key operating markets. We aim to secure more projects in the coming months, as our tender pipeline comes into fruition,” he added.
Currently, the group is bidding for another RM1.5 billion worth of jobs.
Kelington shares slipped two sen or 1.64% to close at RM1.20 today, giving the group a market capitalisation of RM774.3 million, after some 463,900 shares were done.