KUALA LUMPUR (April 7): NWP Holdings Bhd through its indirect subsidiary, NOOA Marine Sdn Bhd, has secured a marine sand mining and transportation project in the sea around Melaka for two years from Gezhouba Engineering (Malaysia) Sdn Bhd — an indirect subsidiary of China Gezhouba Group Ltd, a listed entity within state conglomerate Energy China.

The deal, worth RM36 million, will require NOOA Marine to deploy a number of engineering ships according to the needs of mining tasks, enter the designated sea area to mine marine sand and transport it to the sea area designated by Gezhouba and to discharge/unload the marine sand from the barge.

“NOOA Marine shall observe all management, arrangement and instructions of Gezhouba Engineering for the project during the project management and implementation process,” said the timber manufacturer in a bourse filing on Friday (April 7).

The designated area is located within 12 nautical miles of Melaka's territorial sea and the eight coordinates on the boundary lines of the area, according to NWP.

NOOA Marine is a joint venture between NWP’s unit NWP Marine Sdn Bhd and OneOne Auro Marine Sdn Bhd.

The agreement will not have any effect on the issued and paid-up share capital of NWP Group but is expected to contribute positively towards the future earnings of NWP, it said.

NWP non-executive chairman Datuk Tan Lik Houe said: “We are thrilled to embark on this significant marine sand mining and transportation project in collaboration with Gezhouba Engineering.”

“This venture represents a remarkable milestone for our group and aligns with our strategic objectives to diversify our business and strengthen our position in the market,” he added.

Meanwhile, executive director Tan Jyy Yeen said the project will contribute to the growth and expansion of its revenue streams while boosting the group’s overall financial performance.

“As we navigate the challenges of the global economy, this collaboration signifies our commitment to seeking new opportunities, fostering innovation, and delivering long-term value to our shareholders,” said Jyy Yeen.

NWP’s share price closed 0.5 sen or 2.22% lower to 22 sen on Friday (April 7), giving its market capitalisation of RM124.49 million.