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KKB bags jobs and supply orders worth RM60.9 mln

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KUCHING: KKB Engineering Bhd has secured construction contracts under the Sarawak Water Supply Grid Programme and supply of steel water pipes worth a combined RM60.9 million.

The company said it had received two letters of award from Jabatan Bekalan Air Luar Bandar Sarawak (JBALB) for the proposed construction and completion of water supply from Kota Samarahan to Sebuyau (Package 3A and 3B) for the water grid programme — stressed areas.

KKB also received additional supply orders for mild steel concrete-lined (MSCL) pipes & specials from three companies — Laras Jaya Engineering Sdn Bhd, Cipta Wawasan Maju Engineering Sdn Bhd and Cityon Development Sdn Bhd.

“These supply orders are to be delivered in stages within H1-2020,” KKB said in a filing with Bursa Malaysia
yesterday.

The company said the contract period for construction contract Package 3A commences from end of this month for completion by December 2020.

For construction contract Package 3B, the duration of the contract is 16 months, commencing end of this month and  scheduled for completion by February 2021.

“The contracts are expected to contribute positively towards the earnings and net assets of the company and group for the duration of the contracts.

“Risk factors affecting the contracts include execution risks, such as availability of materials and skilled manpower, changes in pricing, weather conditions and/or political, economic and regulatory conditions,” added KKB.

In February 2019, KKB was awarded two contracts worth RM110.8 million by JBALB for the proposed water supply from Kota Samarahan to Sebuyau under the water grid programme.

The first is the design, construction, completion, testing and commissioning of proposed Package SRI (southern region) and the second, the construction, completion of MSCL pipeline and all associated works
(Package 1C).

Package SRI contract period is for 21 months for completion by December 2020 while Package 1C is scheduled for completion in March 2020.

Laras Jaya has ordered MSCL pipes from KKB in March 2019, with the supply to take nine months.

Meanwhile, Kho Kak Beng Holdings Company Sdn Bhd has acquired 100,000 KKB shares for RM143,600 on Oct 10 and 11, according to KKB’s filing with Bursa Malaysia.

This has increased its equity interest in the steel fabricator to 110,765,520 shares or 42.97 percent.

Kho Kak Beng Holdings Co is the private vehicle of the Kho family, the controlling shareholder in KKB.

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