Sunway Construction bags RM169m Johor highway job

PETALING JAYA: Sunway Bhd's sub-subsidiary Sunway Construction Sdn Bhd (SunCon) has been awarded a RM169.86 million job by SJIC Bina Sdn Bhd, a wholly owned subsidiary of Iskandar Investment Bhd, for the proposed design, construction, testing and completion of the Coastal Highway Southern Link in Johor.
SunCon is en-route to a listing on the local stock exchange.
The proposed project is expected to commence on Jan 7, 2015 with a contract period of 24 months.
"It is expected to contribute positively to the earnings of Sunway Group from the financial year ending Dec 31, 2015 onwards," Sunway said in a filing with Bursa Malaysia yesterday.
The proposed project is expected to benefit Sunway Iskandar, a major township project by Sunway, Khazanah Nasional Bhd and Iskandar Investment, and other developments in Medini Iskandar Malaysia and its surroundings including those by UEM Sunrise Bhd and Mulpha International Bhd, due to the improved connectivity to the Coastal Highway and shortened traveling time to the Second Link to Singapore to about five minutes.
"The proposed project is subject to normal construction risk of materials price fluctuation. However, with the past experience and expertise of SunCon in construction projects, this risk could be mitigated," Sunway said.
SunCon is a wholly-owned subsidiary of Sunway Holdings Sdn Bhd, which in turn is a wholly-owned subsidiary of Sunway.