KUALA LUMPUR: Hock Seng Lee Bhd (HSL) has secured a RM90.28 million water treatment plant project within the Samalaju enclave from the Sarawak government.
In a statement to the exchange yesterday, HSL managing director Datuk Paul Yu Chee Hoe said the job scope included mechanical and electrical works, earthworks, drainage, retaining structures, and piling and piping jobs.
“This contract marks HSL’s first successful tender result for a project to be directly awarded by Recoda (Regional Corridor Development Authority) and we hope there will be more to come,” Yu said. Recoda is spearheading the development of the Sarawak Corridor for Renewable Energy (Score), one of Malaysia’s five economic growth corridors.
According to Yu, the water treatment plant project will see the construction of pump and chemical houses, aerators, flocculation and sedimentation tanks, and filtration process facilities. The 17-month project is due for completion by April 2013.
He said site possession for the water treatment facility is expected to take place this month. The project, which brings the builder’s orderbook to RM1.7 billion, is anticipated to contribute positively to HSL’s earnings and net assets for the financial years ending Dec 31, 2012 to 2013, according to Yu.
HSL’s financials have improved. Net profit rose 22% to RM38.56 million in the first half year ended June 30 from RM31.52 million a year earlier while revenue was up 34% to RM272.51 million from RM203.66 million. The debt- free company had a cash pile of RM133.83 million as at June 30.
Covering 70,709 sq km with a population of over 600,000, Score is located in the central region of Sarawak. The enclave is rich in energy resources such as hydropower, coal and natural gas that will spur the growth of energy-intensive sectors in the state.
Designated as the new heavy industry hub for Sarawak, Samalaju is seen as a growing township where foreign investors engaged in metal-related production have set up operations. These include Japan-based Tokuyama Malaysia Sdn Bhd and Singapore’s OM Materials and Asia Minerals Ltd which have signed power purchase agreements with Sarawak Energy Bhd.
According to news reports, the Sarawak government has decided to set up a state port at Samalaju to serve industries located in Score. It was reported that Bintulu Port Holdings Bhd had received a letter of intent from the Sarawak government to submit a detailed proposal to build, own and operate a new seaport within the Samalaju enclave.
Meanwhile, Yu said rural water supply is an area the company is keen to pursue as it can leverage on its marine engineering skills and technical capabilities.
“Rural water treatment and supply is an area of great potential for HSL and it is a rewarding field given that a safe, reliable water supply has a positive impact on raising the living standard and protecting the health of our fellow Sarawakians while encouraging commerce and industry.
“We seek to have a strong presence in infrastructure projects for Score and procuring this project after an open tender exercise, demonstrates HSL’s ongoing competitiveness in sophisticated engineering and construction activities,” he said.
Prior to the Samalaju water project, HSL had last August signed a subcontract agreement with AF Construction Sdn Bhd to undertake a rural water supply project in Sibu.
The project is worth RM45.7 million.
HSL closed three sen higher to RM1.45 yesterday. Its net assets per share stood at 67 sen as at June 30.
This article appeared in The Edge Financial Daily, November 1, 2011.
In a statement to the exchange yesterday, HSL managing director Datuk Paul Yu Chee Hoe said the job scope included mechanical and electrical works, earthworks, drainage, retaining structures, and piling and piping jobs.
“This contract marks HSL’s first successful tender result for a project to be directly awarded by Recoda (Regional Corridor Development Authority) and we hope there will be more to come,” Yu said. Recoda is spearheading the development of the Sarawak Corridor for Renewable Energy (Score), one of Malaysia’s five economic growth corridors.
According to Yu, the water treatment plant project will see the construction of pump and chemical houses, aerators, flocculation and sedimentation tanks, and filtration process facilities. The 17-month project is due for completion by April 2013.
He said site possession for the water treatment facility is expected to take place this month. The project, which brings the builder’s orderbook to RM1.7 billion, is anticipated to contribute positively to HSL’s earnings and net assets for the financial years ending Dec 31, 2012 to 2013, according to Yu.
HSL’s financials have improved. Net profit rose 22% to RM38.56 million in the first half year ended June 30 from RM31.52 million a year earlier while revenue was up 34% to RM272.51 million from RM203.66 million. The debt- free company had a cash pile of RM133.83 million as at June 30.
Covering 70,709 sq km with a population of over 600,000, Score is located in the central region of Sarawak. The enclave is rich in energy resources such as hydropower, coal and natural gas that will spur the growth of energy-intensive sectors in the state.
Designated as the new heavy industry hub for Sarawak, Samalaju is seen as a growing township where foreign investors engaged in metal-related production have set up operations. These include Japan-based Tokuyama Malaysia Sdn Bhd and Singapore’s OM Materials and Asia Minerals Ltd which have signed power purchase agreements with Sarawak Energy Bhd.
According to news reports, the Sarawak government has decided to set up a state port at Samalaju to serve industries located in Score. It was reported that Bintulu Port Holdings Bhd had received a letter of intent from the Sarawak government to submit a detailed proposal to build, own and operate a new seaport within the Samalaju enclave.
Meanwhile, Yu said rural water supply is an area the company is keen to pursue as it can leverage on its marine engineering skills and technical capabilities.
“Rural water treatment and supply is an area of great potential for HSL and it is a rewarding field given that a safe, reliable water supply has a positive impact on raising the living standard and protecting the health of our fellow Sarawakians while encouraging commerce and industry.
“We seek to have a strong presence in infrastructure projects for Score and procuring this project after an open tender exercise, demonstrates HSL’s ongoing competitiveness in sophisticated engineering and construction activities,” he said.
Prior to the Samalaju water project, HSL had last August signed a subcontract agreement with AF Construction Sdn Bhd to undertake a rural water supply project in Sibu.
The project is worth RM45.7 million.
HSL closed three sen higher to RM1.45 yesterday. Its net assets per share stood at 67 sen as at June 30.
This article appeared in The Edge Financial Daily, November 1, 2011.
