Salcon unit wins RM51m construction sub-contract for Sri Lanka water supply project

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KUALA LUMPUR (Sept 27): Salcon Bhd’s wholly-owned subsidiary Salcon Engineering Bhd has secured an RM50.85 million sub-contract from China Geo Engineering Corporation for a water supply construction project in Sri Lanka.

In a filing today, the group said its subsidiary will carry out mechanical and electrical work for the Valachchenai Water Supply Project.

The project is expected to last 36 months from the date of commencement and has no option for renewal, it said.

The date of commencement will be determined by China Geo Engineering, it added.

The contract sum comprises specifically a payment of US$7.55 million (RM31.66 million) and 833.7 million Sri Lankan rupees  (RM19.19 million).

“The project is expected to contribute positively towards the earnings and net assets of Salcon group for the financial years ending Dec 31, 2020, Dec 31, 2021 and Dec 31, 2022,” it said.

Salcon’s share price closed unchanged at 23 sen, for a market capitalisation of RM191.88 million.