KUALA LUMPUR (Sept 14): Kelington Group Bhd (KL:KGB) said on Monday it has secured a contract worth a provisional RM1.83 billion that marks the largest ever job for the engineering services firm.

The contract will see Kelington building a turnkey total facility tool hookup services for a semiconductor wafer fabrication facility in Gujarat, India, the company said in an exchange filing. Works are expected to begin this month and are expected to be completed by February 2029.

The final contract value will be determined based on the actual quantities of tools provided and services executed.

“This project provides us with an important platform to deepen our presence in the semiconductor industry and create opportunities for further growth,” said chief executive officer Lim Seng Chuan.

India joins other countries in accelerating their chip manufacturing industry amid an artificial intelligence race. The government is backing the effort with financial outlay of around US$10 billion (RM40.7 billion) to turn the country into a global hub for semiconductor design, manufacturing, and development.

Kelington, which mainly provides industrial gases, has earlier announced a plan to build an air separation plant in Gujarat’s neighbouring state of Maharashtra. The gases are used in industries ranging from electronics to pharmaceuticals and from metallurgy to food processing.

India is making significant investments to build its domestic semiconductor manufacturing capabilities, and “we believe Kelington is well positioned to participate in this development”, Lim said in a statement about the latest contract.

“The scale of this award further strengthens our presence in the market and provides us with a solid foundation to pursue further opportunities as India’s semiconductor ecosystem continues to expand,” he added.

Kelington has secured new contracts worth RM3.59 billion year-to-date.

Shares of Kelington were down 26 sen or about 3% to RM8.20, valuing the company at over RM7 billion ahead of the latest contract announcement during the midday trading break.