KUALA LUMPUR (Oct 5): Citaglobal Bhd (KL:CITAGLB) said on Monday its indirect unit LAWI Engineering GmbH (LAWI Germany) has secured a RM29 million share of a RM52.1 million contract for a waste-to-energy (WTE) project in Thailand.
LAWI Germany, together with an unnamed consortium partner, was awarded the contract by Siam Power Co Ltd for the engineering, procurement and construction of a steam boiler plant for the Siam Power Naklang WTE project in Nakhon Ratchasima Province.
LAWI Germany is 55% owned by Citaglobal Environment Management Sdn Bhd, which in turn is a 56.14% owned subsidiary of Citaglobal.
Under the contract, LAWI Germany will undertake the imported engineering and equipment supply portion valued at €6.33 million, or about RM29 million, while its consortium partner will handle the local portion worth 189.63 million baht, or about RM23.1 million, according to Citaglobal's bourse filing on Monday.
LAWI Germany's scope includes overall engineering and project management of the boiler island, as well as basic engineering for the technology component of the WTE plant and the supply of its combustion and process optimisation systems.
The plant is designed to process up to 500 tonnes of municipal solid waste a day and generate about 9.9MW of electricity, Citaglobal said.
The boiler island is targeted to begin commercial operations within 13 months from the effective date of the letter of award on Sept 30.
Citaglobal Environment Management CEO Thye Chee How said the contract builds on LAWI Germany's existing experience in Thailand, where its technology is already used in WTE projects in Ayutthaya and Saraburi.
“LAWI’s technology is already operating in power plants across Thailand. The Siam Power contract builds on that experience, bringing its combustion technology and boiler engineering to another waste-to-energy project,” he said in a separate statement.
“For Citaglobal, our investment in LAWI gives us a stake in a technology business with an established regional track record. Its proprietary systems and engineering expertise provide a strong platform for our Environment business to pursue further opportunities across Southeast Asia,” Thye added.
LAWI Germany, which was founded in 1996 and is headquartered in Kiel, has completed more than 50 biomass and WTE power plant projects across 10 countries, with a total installed capacity of about 445MW, according to the bourse filing.
Citaglobal acquired a 55% stake in LAWI Germany for an undisclosed sum in January 2025.
The group's shares closed at RM1.07 on Monday, down three sen or 2.73%, valuing the group at RM602.74 million.