KNM-Ho Hup JV bags RM57.8m RAPID job

by **Cals** Thu 24 Mar 2016, 06:23

KNM-Ho Hup JV bags RM57.8m RAPID job

By Supriya Surendran / theedgemarkets.com | March 23, 2016 : 7:07 PM MYT
KUALA LUMPUR (March 23): KHH Infrastructures Sdn Bhd has bagged a civil and underground piping subcontract worth RM57.8 million at the Refinery and Petrochemical Integrated Development (RAPID) project in Johor.
KNM Group Bhd and Ho Hup Construction Company Bhd said in separate filings to Bursa Malaysia today that KHH, which is a 50:50 joint venture between KNM's wholly-owned subsidiary KNM Process Systems Sdn Bhd and Ho Hup, was awarded the job by Sinopec Engineering Group Malaysia Sdn Bhd (SEGM).
The scope of supply and work of KHH will include general building works for electrical substation and field auxiliary room, foundations, superstructures, internal roads, paving, underground piping, trenches, manholes, pits, basins and related civil work.
SEGM is a unit of the Sinopec Group, which is a leading oil refining, petrochemical and chemical engineering group in China.
The 24-month subcontract is scheduled to commence on March 30.
Ho Hup and KNM said the subcontract is expected to contribute positively to their earnings for the financial years ending Dec 31, 2016, 2017 and 2018.
Ho Hup added that this is the second contract awarded by SEGM to the company in the RAPID project. In September last year, the group was awarded a RM21.6 million subcontract to perform soil improvement work.
Shares of KNM Group were down 0.5 sen or 1.03% today at 48 sen for a market capitalisation of RM1.03 billion.
Ho Hup shares ended the day up 0.5 sen or 0.55% at 91.5 sen, for a market capitalisation of RM331.57 million.