Kelington secures construction contract worth around RM420m

Kelington secures construction contract worth around RM420m
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KUALA LUMPUR (Sept 14): Kelington Group Bhd has secured a construction contract in Sarawak.

The engineering solutions provider said in a bourse filing that its wholly-owned subsidiary Kelington Technologies Sdn Bhd had received an award of contract from a manufacturing company at Sama Jaya Free Industrial Zone in Kuching to undertake the construction work with respect to its Sarawak Expansion Project.

The company did not name the client, but said it is owned by a multinational company based in the US, which is a world-leading developer, manufacturer, and provider of data storage devices and solutions.

Kelington said the contract value is about RM420 million subject to the actual amount of work carried out, depending on variation orders, scope options and value engineering.

The works shall commence in mid-September 2021 and are expected to be completed by Dec 31, 2022, it added.

Kelington also said the contract is expected to contribute positively to the earnings and net assets of the group for the financial years Dec 31, 2022 and 2023.

Kelington slipped one sen or 0.69% to RM1.44 today, valuing the group at RM922.7 million.

Lam Jian Wyn