KUALA LUMPUR (Oct 16): Electrical and mechanical engineering firm LFE Corp Bhd (KL:LFECORP) has secured a subcontract worth RM38.8 million at the hyperscale data centre being developed in Elmina Business Park in Sungai Buloh.

The contract to build a single-story data centre block with an attached office and utility rooms was awarded by Gamuda Engineering Sdn Bhd, a wholly owned subsidiary of Gamuda Bhd (KL:GAMUDA), to R&L Engineering Sdn Bhd, said LFE Corp in a bourse filing on Wednesday.

R&L Engineering is a new 50-50 joint venture between RYB Engineering Pte Ltd and LFE Engineering Sdn Bhd, which is a wholly owned subsidiary of LFE Corp.  

RYB Engineering is a part of Japan's Chudenko Group that is based in Singapore and has provided electrical system installation services for various data centres in Singapore, including the Lok Yang Way Data Centre, Jurong West Data Centre, and Keppel Data Centre.

Gamuda Engineering is undertaking the data centre project for Sime Darby Property Bhd (KL:SIMEPROP).

LFE said the subcontract, which is expected to be completed by Oct 18, 2025, will positively contribute to its earnings and net assets for the financial year ending Dec 31, 2024, and continue to do so until the contract's expiry.

Shares in LFE Corp closed half a sen or 2.08% lower at 23.5 sen on Wednesday, giving the company a market capitalisation of RM255.1 million. Year-to-date, the stock has gained over 23%.