Kelington subsidiary secures about RM133 million in additional Kuching plant work
The steelwork award takes the customer's project contracts and purchase orders to about RM416 million, with completion scheduled by April 2028.
Kelington Group Bhd has announced a second award for its wholly owned subsidiary, Kelington Technologies Sdn Bhd (KTSB), valued at about RM133 million. Granted on Oct 2, the contract involves structural steelwork for an expansion of a Kuching, Sarawak, manufacturing facility producing data storage products.
Kelington told Bursa Malaysia that the customer operates in the Sama Jaya Free Industrial Zone. Construction is to begin immediately, with April 2028 set as the scheduled completion deadline.
The same customer awarded KTSB about RM172 million on Sept 29 for engineering work and initial infrastructure development. At that announcement, Kelington put project contracts and purchase orders at about RM283 million; the latest addition brings the amount to about RM416 million.
Kelington shares reached RM9 at the noon trading break, gaining 37 sen, or 4.3%. The group's market capitalisation stood at RM7.94 billion.
The company expects the award to benefit earnings and net assets in its financial year that ends on Dec 31, 2026, with further contributions until completion. It also anticipates additional awards to KTSB for other project work and said material developments would be announced as required.
Kelington said it did not foresee exceptional risks, other than the operational risks normally involved in such a contract.
