KUALA LUMPUR (Dec 22): Kelington Group Bhd said its unit Kelington Engineering (S) Pte Ltd (KES), has secured a contract worth approximately RM110 million to provide Ultra High Purity (UHP) solutions for a wafer production facility in Singapore.

Kelington did not specify the name of its client, only saying its customer is a "global leader in engineering and project management of high-technology facilities who has been appointed as the contractor of the end-customer".  

The end-customer is one of the leading manufacturers of silicon wafers which are a key component in semiconductor chips, according to the group’s statement.

Under the contract, Kelington will undertake the bulk and specialty gases distribution system works for the end customer’s new manufacturing facility in Singapore.

The project will commence immediately from December 2021 and is slated for completion by May 2023. The group added the project is expected to contribute positively to the group’s earnings and net assets for the financial years ending Dec 31, 2022 (FY22) and FY23.

Kelington’s chief executive officer Raymond Gan said the UHP equipment for this project will be fabricated and supplied by the group’s wholly-owned indirect subsidiary KE System Integration (Chuzhou) Co Ltd in China.

“This demonstrates that our in-house fabricated equipment is recognised and certified for use in an advanced wafer production facility. We believe this will elevate our value chain in the industry as well as our profitability moving forward.

“Notably, as Singapore is one of the most attractive destinations for technological investments globally, our Singapore operations has been one of the key contributors in terms of project flows over the past several months,” he added.

On top of this RM110 million contract win, Kelington has also secured several other UHP contracts in Singapore totaling RM66.3 million over the past few weeks alone.

This brings the total value of new contracts secured in recent weeks to RM176.3 million. These contracts are for works to be undertaken for different end customers at some of the most advanced semiconductor facilities in Singapore.

Cumulative value of new contracts clinched this year has reached an all-time high of RM1.184 billion, lifting Kelington’s current outstanding orderbook to RM1.225 billion.

Looking ahead, the group remains optimistic on its prospects, underpinned by its robust project pipeline across its operating markets in Malaysia, Singapore and China.

“Our tender activities also continue to remain active and by leveraging on our strong market position, we are well-poised to capture more business opportunities. Not resting on our laurels, we will continue stepping up our efforts to secure more projects in the coming months while delivering high quality output to our customers in a timely manner,” Gan added.

Kelington’s shares closed up five sen or 3.05% at RM1.69, valuing the group at RM1.09 billion. Year to date, the stock has risen 21.58%.