KUALA LUMPUR (Dec 26): Resintech Bhd (KL:RESINTC) has secured a US$3.97 million (RM16.07 million) contract to supply plastic water pipes and fittings in Cambodia.

In a filing with Bursa Malaysia on Friday, the plastic pipes and fittings manufacturer said the five-month contract was awarded to its wholly owned subsidiary Resintech Plastics (M) Sdn Bhd by the Phnom Penh Water Supply Authority (PPWSA).

This award represents the second batch secured by Resintech Plastics under the Bakheng Water Supply Project Phase 3. The previous contract, worth RM16.5 million, was awarded in mid-September.

The Bakheng project is one of Cambodia’s largest water infrastructure developments and is financed by Agence Française de Développement, France’s official development bank, together with PPWSA.

“This second contract under the Bakheng project reflects our growing participation in regional water infrastructure works. Together with ongoing water investments in Sarawak and Sabah, we see steady demand for our products over the next few years,” said Resintech managing director Datuk Dr Teh Kim Poo in a statement.

The group noted that in Sarawak, more than RM6 billion worth of water and sewerage projects have been approved under the 13th Malaysia Plan, including treatment plants, transmission pipelines and rural distribution systems. In Sabah, meanwhile, the state government has placed water security as a priority, with large-scale projects and budget allocations aimed at expanding clean water supply and upgrading ageing infrastructure.

"Together, these programmes provide clear medium-term demand visibility across the group’s product portfolio," the group said.

Shares in Resintech closed down 1.5 sen or 2.8% at 52 sen on Friday, valuing the group at RM101.78 million. Year to date, the stock has declined 27%.