The company will be undertaking supply and installation of process exhaust distribution ductwork

By TMR / Pic by BLOOMBERG

KELINGTON Group Bhd via its indirect wholly owned subsidiary, Puritec Technologies (S) Pte Ltd, has clinched an ultra high purity (UHP) contract worth RM40 million.

This contract win is the third UHP contract secured from a global leader in engineering and project management of high-technology facilities, which is engaged by a global leading semiconductor manufacturer, the company noted in a statement yesterday.

Kelington will be undertaking supply and installation of process exhaust distribution ductwork.

“The new fabrication is expected to be the most advanced semiconductor manufacturing facility in Singapore, and its integrated solutions will be catered for fast-growing end-markets in the automotive, 5G mobility and secure device segments,” the company added.

The project will commence in mid-October and is slated to be completed by December 2022.

With this new contract win, Kelington’s new orders clinched to date in 2021 amounts to RM841 million.

With projects carried forward from the previous year, the group’s outstanding orderbook now stands at RM979 million.

Kelington shares ended six sen higher at RM1.71 on the news, giving it a market capitalisation of RM1.06 billion.

Kelington CEO Raymond Gan said this is the third contract win in a span of three months from the same client in Singapore and will deepen Kelington’s participation in the construction of the advanced semiconductor facility.

“The three contracts clinched are collectively worth RM134 million. The profound confidence from industry leaders to entrust us with repeated projects that demand high technical capability has raised our corporate stature in the industry. Hence, this puts us on a stronger footing to bid for more projects from clients around the globe,” said Raymond.

The group has secured two UHP projects each on Aug 18 and Sept 6 worth RM45 million and RM49 million respectively from the same client for both bulk and specialty gas system distribution works at the same facility.

“Industry players are aggressively expanding to meet the rising demand for semiconductors globally. The momentum of project flows is encouraging as more tender activities are coming on stream across our operating markets. Therefore, we are confident to maintain our strong pace of order replenishment moving forward,” Raymond added.

He noted that Kelington will execute its sizeable orders pipeline which will enable the company to achieve a stellar financial year. — TMR