Pipe manufacturer Engtex Group Bhd has secured five contracts worth RM60mil to supply mild steel cement-lined and ductile iron pipes.
KUALA LUMPUR: Pipe manufacturer Engtex Group Bhd
has secured five pipe supply contracts worth RM60mil in the first quarter of 2017 and it is also tendering for more than RM300mil jobs nationwide.
It said on Thursday the contracts were to supply mild steel cement-lined (MS) and ductile iron (DI) pipes to various government water and infrastructure projects in Johor, Pahang, Kedah and Selangor.
These contracts are estimated to be delivered within six to eight months, it said.
Engtex group managing director Datuk Ng Hook said the new contracts placed the company on a strong footing for 2017 and raised its orderbook to RM170mil as at March 31, 2017.
“Most of these are set to be recognised in the financial year ending Dec 31, 2017 (FY2017),” he said.
Ng said Engtex was also tendering for more than RM300mil worth of projects nationwide. These include new pipe supply contracts for residential and infrastructure projects.
Backed by our impeccable track record of product quality and timely delivery, we are optimistic of beefing up our orderbook to sustain our financial performance for the rest of the year.”
He added the MS pipe plant has a production capacity of 42,000 tonnes (MT) per annum and a utilisation rate of about 70%, as at Dec 31, 2016. Engtex had also invested RM7mil to expand the capacity to 66,000 tonnes.
“The MS plant’s ample capacity, ability to produce the largest-diameter MS pipe of 3020mm, and strategic location in the Klang Valley makes us well placed to supply our pipes to the vast number of ongoing developments in a timely manner,” he added.
As for its DI pipe plant in Kuantan, Ng said Engtex was investing RM8mil capital expenditure plan to expand the production capability to produce larger diameter pipes from the current 800mm to 1200mm.
The plant is set to be completed by end-2017 and position Engtex to be the largest diameter DI pipe manufacturer in Malaysia.
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