CIMB Equities Research remains cautious on the construction sector despite possible revival of the East Coast Rail Line (ECRL), albeit downsized,
KUALA LUMPUR: Lafarge Malaysia Bhd's subsidiary has secured a RM270mil contract to supply cement to China Communications Construction (ECRL) Sdn Bhd (CCC) for the proposed East Coast Rail Link (ECRL) project.
It said on Monday Lafarge Cement Sdn Bhd would supply cement from now to Dec 31, 2019, to all eight packages of work for the ECRL project.
“The agreement is renewable for a further two years subject to mutually agreed renewal terms and conditions,” it said.
The ECRL is a 688km railway line which will link the Klang Valley to Pengkalan Kubor, Kelantan.
To recap, in 2016, China’s state-owned China Communications Construction Company Ltd was awarded the RM55bil contract to be the main contractor for the ECRL. The contract was secured by its its Malaysian unit CCC.
The ECRL, which stretches over four states, will have two phases: Phase 1 is from the Integrated Transport Terminal (ITT) in Gombak, Selangor to Kota Bharu, Kelantan; and Phase 2 from Gombak North to Port Klang, Selangor and Kota Bharu to Pengkalan Kubor, Kelantan.
Lafarge Malaysia president and CEO Thierry Legrand said the agreement marked a major milestone in its relationship with CCC.
“We are very pleased to be awarded the trust to supply such a landmark project. Working closely with CCC, we are privileged to support the country’s infrastructure requirements,” he said.
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