KUALA LUMPUR: Kelington Group Bhd’s wholly-owned subsidiary, Kelington Engineering (Shanghai) Co Ltd has secured a RMB123mil million (about RM80mil) to perform gas hook up works in Beijing, China.

       The integrated engineering solutions provider, in a filing with Bursa Malaysia said the contract was awarded by China’s largest semiconductor foundry.

       The contract will commence in May 2022 and is expected to be completed by March 2024.

       “The contract is expected to contribute positively to the earnings and net assets of Kelington for the financial years ending Dec 31, 2022 (FY22) - 2024 respectively,” it said.

       In a separate statement, chief executive officer Raymond Gan said the contract win also signals that the semiconductor shortage will remain prevalent in the near term as there is continuous growth in demand for chips alongside a stretched lead time in building wafer fabrication plants.

       “Expansion activities of technological players remain active across our operating markets, especially China and Singapore. We expect to see more projects coming on stream throughout the year and continue bolstering our already elevated orderbook,” he said.

       Inclusive of this contract, Kelington has so far secured new orders amounting to RM427mil in the current FY22.