KELINGTON'S FY20 NEW CONTRACTS AT RECORD RM490 MLN

KUALA LUMPUR, Jan 18 -- Integrated engineering solutions provider Kelington Group Bhd has clinched several new contracts amounting to RM118 million in the fourth quarter of its financial year 2020 (4Q20).

In a statement, the group said the new contract wins lifted Kelington’s total new orders in the financial year of 2020 to RM490 million, hitting a new all-time high of total new orders secured and surpassed last year’s record of RM386 million.

A majority of the new orders secured were from the ultra high purity (UHP) segment, accounting for about 60 per cent of the total, from China, Malaysia and Singapore, while more than one-third of new orders secured was awarded by the largest semiconductor foundry company in China.

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Chief executive officer Raymond Gan said Kelington remained resilient during the unprecedented year supported by a strong pipeline of project orders.

The recovery of the semiconductor industry has been encouraging, and the group is seeing resumption of project orders from Malaysia and Singapore for its UHP and process engineering division.

“Despite the fluid economic landscape, our project flow from China was doing relatively well and contributed approximately 35 per cent of total new orders secured in 4Q20, as our major semiconductor client continues to expand its operations,” he said.

Gan said the group is positive that the upward momentum will continue in 2021 as the semiconductor and electrical and electronic industry players are gradually ramping up their operations to get back on track for expansion.

Meanwhile, its industrial gases operations have normalised with production volume resumed to the previous level.

“However, following the recent announcement on the Second Movement Control Order, we are cautiously optimistic on the pace of sales orders.

“We do not foresee a similar decline in demand for our liquid carbon dioxide as in the first MCO as most of our major end-users such as industry players from construction, manufacturing, etc are permitted to operate this time around,” he added.

-- BERNAMA