KUALA LUMPUR (Nov 22): Pasdec Holdings Bhd said a RM380 million vehicles electrical wiring harness contract awarded to its subsidiary in Botswana by Nissan South Africa (Pty) Ltd has been terminated.
This was due to due to a "failure to meet targets relating to part price, tooling price, quality, delivery conditions and production capacities" as agreed between the two sides, Pasdec said in a bourse filing today.
The subsidiary, Pasdec Automotive Technologies (Botswana) (Pty) Ltd, which is held via Padedec's 70% unit in South Africa, Pasdec Automotive Technologies (Pty) Ltd, had bagged the contract in October last year. The seven-year contract had commenced in June this year.
“The cancellation of the contract will not have any material impact on Pasdec group’s revenue and earnings for the financial year ending Dec 31, 2019 [FY19]," Pasdec said.
Pasdec's net loss had widened to RM5.75 million for the six months ended June 30, 2019 (6MFY19), from RM4.8 million in the same period last year. Revenue fell 18.43% to RM62.59 million, from RM76.73 million.
Pasdec shares were not traded today. The counter last closed two sen or 5.71% lower at 33 sen, valuing the group at RM132.12 million.