Kelington bags RM64.58m job to supply and install bulk gas system to Chinese party

PETALING JAYA: Kelington Group Bhd's Kelington Engineering (Shanghai) Pte Ltd has secured a RMB102.62 million (RM65.48 million) contract from Chengdu Construction Engineering Corporation (Group) to supply and install bulk gas system and distribution piping for GEXIN (Chengdu) Integrated Circuit Manufacturing.

GEXIN is a joint venture company between worldwide semiconductor wafer foundry leader GlobalFoundries and Chengdu Municipal Government.

Works on the job are to start immediately and expected to be completed by April 2018. Kelington will fund the job through internally generated funds and bank borrowings.

The contract is expected to contribute positively to the earnings and net assets of Kelington for the financial years ending Dec 31, 2017 and Dec 31, 2018.

Kelington’s share price was up 6.5 sen, closing at 70.5 sen, some 10.56 million shares changed hands.