KNM awarded contracts worth RM27.71m

14 Jun 2019 / 14:53 H.

PETALING JAYA: KNM Group Bhd has been awarded two contracts with an estimated value of RM27.71 million via its indirect wholly-owned subsidiaries FBM Hudson Italiana S.p.A (FBM) in Italy and FBM-KNM FZCO (FZCO) United Arab Emirates.

According to the group’s Bursa filing today, its Italian subsidiary FBM has accepted a design and supply contract from Dangote Oil Refining Co Ltd and Dangote Petroleum Refinery & Petrochemicals Free Zone Ent for US$4.55 million (RM18.97 million).

The contract is for the design, fabrication and supply of air cooler heat exchangers in respect of the Petroleum Refinery And Polypropylene Plant in Lekki Free Trade Zone, Nigeria with a 12 months supply and delivery duration from the date of the acceptance of the contract.

Meanwhile, its operations in the UAE, FZCO has received a purchase order from Basrah Gas Co for the supply and delivery of replacement heat exchangers to Khor Al Zubair’s gas processing plant in Iraq’s Basrah province for US$2.096 million (RM8.74 million). The supply and delivery duration is for a period no later than Jan 14, 2020.

Both FBM and FZCO are principally involved in the design, engineering, procurement and manufacturing of process equipment, including without limitation pressure vessels, reactors, columns and towers, drums, heat exchangers, air finned coolers, process gas waste heat boilers and specialised shell and tube heat exchangers, condensers, spheres, process tanks, mounded bullets, process skid packages and turnkey storage facilities as well as technical and project management services in relation to process equipment, plant facilities and general facilities for the oil, gas, petrochemicals, minerals processing and renewable energy industries worldwide.

Dangote is Nigeria’s most diversified business conglomerates, a multi-billion Naira company operating in sectors encompassing agriculture, petroleum refinery & petrochemicals, fertilizer, cement and telecom in Nigeria and across the African continent.

Basrah is a public/private joint venture in Iraq, majority owned by the state-owned South Gas Company together with Shell and Mitsubishi and was setup to manage and operate Basrah Province’s abundant endowment of natural gas.

The contract is expected to contribute positively to KNM’s earning for the financial year ending Dec 31, 2019 and Dec 31, 2020.

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