Kelington Group Berhad has received a letter of intent via its subsidiary Ace Gasses Marketing from a semiconductor company in Kulim Kedah to supply industrial gasses for a period of 10 years.
The contract comes from one of the largest optoelectronics semiconductor companies in the world, under the LOI, Aces Gasses will set up onsite generators to produce nitrogen, hydrogen, and oxygen gases at the Customer’s semiconductor manufacturing plant located in the northern state.
The cost of acquisition of components and construction will be funded through internally generated funds and additional bank borrowing. Subject to the signing of a definitive agreement, this Supply Scheme is expected to generate a cumulative revenue of approximately RM180 million for the Group over a period of 10 years via monthly fixed facility fees and sales of gases.
The supply of gases is expected to commence in the first quarter of 2023.