KUALA LUMPUR (Aug 13): ETA Group Bhd (KL:ETA), which has diversified beyond its food manufacturing and distribution business into property and construction, has secured two construction contracts worth a combined RM13.17 million from Eckem Holdings Bhd’s (KL:ECKEM) wholly-owned units to build industrial factories and warehouses in Rawang, Selangor.

In a bourse filing on Thursday, ETA Group said its wholly-owned subsidiary ETA Design & Build Sdn Bhd had entered into two construction agreements with Eckem Sdn Bhd and Entire Concept Sdn Bhd, both wholly-owned by Eckem.

Under each contract, ETA Design & Build will construct a one-storey factory attached to a two-storey warehouse, along with a one-storey office and a one-storey mechanical and electrical floor. Each development will have a total built-up area of 39,574 sq ft.

The projects are scheduled for completion within 24 months.

ETA Group said barring unforeseen circumstances, the contracts are expected to contribute positively to the group’s future earnings and earnings per share over the construction period, beginning with the financial year ending Dec 31, 2026.

ETA Group shares closed 0.5 sen or 3.7% lower at 13 sen on Thursday, giving the group a market capitalisation of RM85.5 million. The stock has declined 18.75% so far this year.

Eckem shares ended unchanged at 10.5 sen, valuing the company at RM65.6 million. The stock has fallen 12.5% year to date.