KUALA LUMPUR (Aug 22): Salcon Bhd has won a RM66.78 million subcontract for the Langat Centralised Sewage Treatment Plant project from MMC Engineering Services Sdn Bhd, a subsidiary of MMC Corp Bhd.

In a filing with Bursa Malaysia today, the piping specialist said the contract, awarded to its wholly-owned unit Salcon Engineering Bhd, comprises the conversion of 10 sewage treatment plants into network pumping stations.

"This forms an integral part of the total component of works for the design and build of the 920,000 population equivalent (PE) Langat Centralised Sewage Treatment Plant project, currently undertaken by the MMC group," said Salcon in a statement.

Salcon expects the project to be completed in 24 months from the date of site possession.

Salcon chief operating officer Ooi Cheng Swee said the award of the contract is a measure of the confidence MMC Engineering Services has in the capabilities of the company as a specialist sewage contractor.

"We look forward to working closely with MMC Engineering Services to rationalise and improve the sewage treatment services in the Cheras – Kajang Basin, Selangor," he added.

Salcon expects the project to contribute positively towards the earnings for the financial year ending Dec 31, 2016 (FY16) to FY18.

The latest win brings the total value of contracts won by Salcon in 2016 up to RM300 million. Earlier this year, Salcon won two construction projects from Konsortium Amanie Joint Venture Sdn Bhd and Pengurusan Aset Air Bhd worth RM232.19 million for the construction of water treatment plants in Kuala Terengganu Utara and Sungai Lebam, Johor respectively.

The group has tendered for RM2.2 billion worth of water and wastewater projects, both locally and overseas.

In December 2014, Salcon had together with its joint venture partner Loh & Loh Constructions Sdn Bhd had been awarded the subcontract works for the design and construction of the Langat plant worth RM470 million.

The counter closed 0.5 sen or 0.81% lower at 61.5 sen today, giving the company a market capitalisation of RM399.66 million.