Kelington subsidiary wins RM247mil project

PETALING JAYA: Kelington Engineering (Germany) GmbH, a full subsidiary of Kelington Group Bhd (KGB) had entered into six framework agreements with a multi-national semiconductor company, according to a Bursa Malaysia filing from the group yesterday.

The agreements collectively cover hook-up services for key process systems, namely: specialty gases, chemicals, slurry, bulk gases, process vacuum, and ultra pure water (UPW).

The total contract value is estimated at a minimum of €30mil, or approximately RM148.2mil, with the potential to increase to €50mil (RM247mil), depending on the final configuration determined by the customer.

Salient terms of the framework agreements include the condition that the actual awarding and commissioning of service packages shall be carried out exclusively in accordance with the respective orders and plans of the end customer, and taking into account the capability and performance of Kelington Engineering (Germany) GmbH.

“A legally binding order will only arise upon the issuance of separate individual purchase orders by the customer.

“Until such an individual order is received, Kelington Engineering (Germany) GmbH has no claim to the order or to a specific order volume,” said KGB.

The group is expecting the agreements to contribute positively to its earnings and enhance its net assets per share during the tenure of the project, which is expected to be completed over the next two to three years, depending on the timing and value of individual orders awarded pursuant to the framework agreements.