Boustead expects its shipbuilding business to turn around this year.
KUALA LUMPUR: Boustead Holdings Bhd has secured a RM1.17bil contract from the Defence Ministry for the supply of four units of littoral mission ships (LMS).
In a filing with Bursa Malaysia Monday, Boustead said its subsidiary Boustead Naval Shipyard Sdn Bhd (BNS) had received and accepted the letter of acceptance (LOA) dated Marc 17 from the Defence Ministry.
“The contract, which is a collaboration between the Malaysian Government Chinese Government, was awarded to BNS under direct negotiation, for collaboration with a Partner Shipyard in China at a price of RM1.17bil (including Goods and Services Tax), to be implemented over four years effective from the date of signing of the LOA by BNS,” Boustead said.
It added that the Littoral Mission Ships would be designed by the Partner Shipyard and the first two vessels would be built and delivered in China in 2019 and 2020, whilst the remaining two vessels would be built and delivered in Malaysia in 2021.
“The contract will have a positive effect on the earnings of Boustead for the financial year ending Dec 31, 2017, and will contribute positively to its future earnings,” Boustead said.
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