Malaysian firms bag Vietnam cold room deal

PETALING JAYA: SKB Shutters Corp Bhd and CycleWord Corp Sdn Bhd have jointly been awarded a contract worth RM66 million to design and build the largest cold room in Vietnam for Hung Vuong Corporation Ltd, a leading seafood processing and export company.
SKB’s share of the contract is valued at about RM43 million for the supply of racking solutions and automated storage and retrieval system (ASRS).
ASRS consists of computer-controlled systems for automatically placing and retrieving loads from defined storage locations in a warehouse.
SKB Shutters Corp Bhd executive director Michelle Sin said the group recently ventured into ASRS, and the cold room job is its first.
Previously, the roller shutter and steel door manufacturing company only supplied racking equipment for warehouses, which constituted about 20-30% of the group’s total revenue.

“For ASRS, we’re not only supplying the racks, we are designing the whole system for them including the implementation of the software system, which directs the robot to go to the particular pallet to pick up the goods,” she told reporters at a press conference yesterday.
She said the project’s contribution of revenue will only be realised in financial year 2017.
At present, 30% of SKB’s revenue comes from overseas sales in Indonesia, Vietnam, Thailand, India and Australia, while the remaining 70% is derived locally.
For the financial year ended June 30, 2015 SKB’s sales revenue stood at RM51.05 million.
Sin added that the group is keen on expanding their product range to reach a wider market, such as venturing into the retail segment – which remains untapped – since they have always been involved in the project and wholesale segments.
Hung Vuong president Duong Ngoc Minh said the company is targeting US$60,000 (RM235,200) per day in revenue from the rental of the warehouse, adding that US$50 million was invested for the project.
“Construction on the project started two months ago and is expected to be completed by the first quarter of next year,” Duong said.