Earthworks and civil engineering services specialist Advancecon Holdings Berhad announced that its associate Advancecon (Sarawak) Sdn Bhd bagged its single-largest earthworks contract worth RM153.5 million to undertake earthworks in Samalaju Industrial Park, Bintulu, Sarawak.
The contract is awarded by Wenan Steel (Malaysia) Sdn. Bhd., which is building an iron and steel production complex.
This is the Group’s single largest earthworks contract, and adds to the Group’s ongoing works in Sarawak, namely two packages for Pan Borneo Highway Sarawak and two roadworks contracts from the Upper Rajang Development Agency (URDA).
With this, works in Sarawak now make up more than one-third of the Group’s enlarged orderbook of RM863.5 million.
Phum Ang Kia, Group Chief Executive Officer of Advancecon Holdings Berhad said, “Our strategy has always been to target and support high-growth areas. This substantive contract win further enhances our profile in Sarawak and positions us strategically to capture more opportunities in East Malaysia. This would also bolster our track record into undertaking earthworks for large-scale industrial properties, in addition to our core expertise for infrastructure and residential townships.”
“With no land possession and utility relocation issues, this particular earthworks project will utilise our fleet of machinery more efficiently than typical highway or roadwork projects. Thus, we foresee an increase in the utilisation rate which
enhances our ability to record stronger profitability. With this new contract, we have secured RM214.1 million in new contract wins for the current financial year, surpassing the previous year’s total. We are clearly riding the uptrend in Malaysia’s construction sector,” he added.
This new contract would be for a duration of 12 months from site possession on March 15, 2021 up to the projected completion on March 14, 2022.
The Wenan steel manufacturing facility will be the largest steel manufacturing plant in Southeast Asia once completed, and is projected to have a production capacity of ten million tonnes per annum. With the aim of achieving iron and steel technology integration, the Metallurgical Corporation of China Ltd, a large group under the supervision of the China Government, will work closely with Hebei Xinwuan Steel Group Co., Ltd to build this modern production base in Sarawak.
Advancecon’s orderbook of RM863.5 million provides the Group with earnings visibility for a minimum of 34 months. Other works in the Group’s existing orderbook comprises works for key infrastructure projects including East Coast Rail Link, West Coast Expressway, as well as earthworks for reputable property developers like SP Setia, Sime Darby and various others.