KUALA LUMPUR (Oct 13): Integrated engineering solutions provider Kelington Group Bhd (KL:KGB) said on Tuesday that it has secured a RM128 million contract from an existing customer to design and build water generation and wastewater treatment systems for a data storage manufacturing facility in Kuching, Sarawak.
The high-purity deionised water systems produce ultra-clean water for manufacturing, while the wastewater treatment systems clean used water before it is reused or discharged.
In a statement, the company said the contract marks the third awarded to its wholly owned subsidiary, Kelington Technologies Sdn Bhd, by a manufacturing company in the Sama Jaya Free Industrial Zone within two weeks.
The project forms part of the facility’s critical manufacturing and process utility infrastructure. Work will commence immediately and is expected to be completed by April 2028.
With the latest award, the value of contracts and purchase orders secured from the customer for the project has increased to about RM544 million from RM416 million, according to the group’s bourse filing on Tuesday.
Kelington said the contract is expected to contribute to the group’s earnings and net assets for the financial year ending Dec 31, 2026, and subsequent financial years until the work is completed.
The group also expects to secure further contracts from the customer for other scopes of work on the project. It said it would announce any material developments as required and does not foresee any exceptional risks beyond the normal operational risks associated with the contract.
Looking ahead, Kelington said the government’s continued emphasis on strengthening Malaysia’s semiconductor industry under Budget 2027 is encouraging and is expected to support further investment in high-value manufacturing.
“This presents opportunities for Kelington to leverage our engineering expertise and participate in future developments,” Kelington CEO Lim Seng Chuan noted.
Shares of Kelington fell 4.01%, or 35 sen, to RM8.38 at Tuesday’s noon break, giving the group a market capitalisation of RM7.4 billion. The counter has risen 62% over the past year.