Kelington secures RM128 million contract for Kuching water systems
The award brings contracts and purchase orders from the customer for the project to about RM544 million, with completion expected by April 2028.
Kelington Group Bhd said on Oct 13 that an existing customer had awarded it a RM128 million job covering the design and construction of water generation and wastewater treatment systems at a Kuching, Sarawak, data storage manufacturing facility.
The company said its wholly owned unit, Kelington Technologies Sdn Bhd, had received three awards within two weeks from the manufacturing customer in the Sama Jaya Free Industrial Zone. Work on the latest contract will start immediately, with completion expected by April 2028.
According to Kelington’s bourse filing, the latest award lifts the value of contracts and purchase orders from that customer for the project from RM416 million to about RM544 million.
The systems are part of the facility’s manufacturing and process utilities. High-purity deionised water is used in manufacturing, while the wastewater systems treat used water for reuse or discharge.
Kelington expects the contract to contribute to earnings and net assets in its financial year to Dec 31, 2026, and subsequent years until completion. It also expects more contracts from the customer covering other work on the project.
At the Oct 13 noon trading break, Kelington shares were down 4.01%, or 35 sen, at RM8.38, valuing the group at RM7.4 billion. The stock had gained 62% over the past year.
