KUALA LUMPUR (Sept 29): Kelington Group Bhd (KL:KGB) has secured a RM172 million contract for engineering and early-stage infrastructure development works for an advanced data storage manufacturing facility in Kuching, Sarawak.

In a bourse filing on Tuesday, the engineering group said its unit, Kelington Technologies Sdn Bhd, accepted the letter of award on Sept 25 from a manufacturing company located at the Sama Jaya Free Industrial Zone.

Works will start immediately, with targeted completion by August 2027.

The group noted that this contract forms part of the customer's overall expansion project in Sarawak. 

Between June and September 2026, Kelington Technologies had secured a contract and various purchase orders totalling RM111 million for the design and build of the manufacturing and associated infrastructure facilities.

That said, with the latest award, the cumulative aggregate value of contracts and purchase orders secured from the customer for the project stands at approximately RM283 million.

Kelington expects the contract to contribute positively to the earnings and net assets of the group for the financial years ending Dec 31, 2026 and thereafter until completion.

Furthermore, the group said it expects to secure additional contracts from the same customer covering various scopes of work in relation to the Kuching project in the coming weeks.

Kelington shares closed four sen higher or 0.46% to RM8.73 on Tuesday, giving the group a market capitalisation of RM7.71 billion.