MMC awards RM470m contract to Salcon-Loh & Loh JV

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KUALA LUMPUR (Dec 22): MMC Corp Bhd has awarded a RM470 million sewage treatment contract to a proposed consortium comprising Salcon Bhd and Loh & Loh Constructions Sdn Bhd.

Salcon told the exchange today the contract involved construction and maintenance of the facility within the Sungai Langat area in Selangor.

According to Salcon, a company with the name Salcon Loh & Loh JV Sdn Bhd will be set up to undertake the project on a 50:50 basis.

Salcon said the 70-month project starts today (Dec 22) and is due for completion on October 19, 2020.

"The project is a construction contract and has no option for renewal. The project is expected to contribute positively towards the earnings and net assets of Salcon group for the financial years ending 31 December 2015 to 31 December 2020," Salcon said.

Today, Salcon shares fell one sen or 1.6% at 12.30pm to settle at 62.5 sen for a market capitalisation of RM418 million.

MMC rose two sen or 0.9% to RM2.33 for a market value of RM7.1 billion.

Salcon shares had fallen 5% this year compared to the FBM KLCI's 7% decline, while MMC shares had dropped 19%.