MTD ACPI enters into JV, pockets RM40m subcontract for Qatar project

by **Cals** Tue 07 Jan 2014, 20:01

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Tuesday, 07 January 2014 19:33

KUALA LUMPUR (Jan 7): MTD ACPI Engineering Bhd announced it has secured a subcontract worth RM40 million for a project in Doha, Qatar, through an unincorporated joint venture (JV).

In a statement to Bursa Malaysia, the construction and engineering firm said MTD ACP Precast LLC (MAP LLC) secured the subcontract for the manufacture and supply of precast steel fibre reinforced concrete tunnel lining segments of the Abu Hamour (Musaimeer) surface & ground water drainage tunnel – Phase 1 project.

MTD LLC is a subsidiary of MTD ACP Precast Sdn Bhd, which in turn is a wholly-owned subsidiary of MTD ACPI.

“The participation in the subcontract is to capitalise on the construction contract that would enhance the group’s order book and profitability,” said the firm.

The statement added MAP LLC and SMEET Precast SPC had also today entered into a subcontract agreement with Impregilo S.p.A (Qatar Branch), through an unincorporated JV namely SMEET Precast SPC & MTD ACP Precast LLC.

It said the JV was formed pursuant to a JV agreement effective on the same date as the acceptance of the subcontract.

“The JV agreement defines the framework for MAP LLC and SMEET Precast SPC towards working together in the undertaking of the subcontract for the RM40 million project.

MTD ACPI said SMEET and MAP LLC shall share profit and losses arising from the subcontract in the proportion of 51:49 respectively.

“The subcontract and JV agreement are expected to contribute positively to future earnings and net assets of the group,” said MTD ACPI.