PETALING JAYA: SKP RESOURCES BHD has secured new orders for the manufacturing of an electronic consumer product from its major customer, Dyson Ltd.
Meanwhile, it had another contract discontinued due to changes in the policy of hiring foreign workers.
The new orders shall be for four years with an estimated value of RM500mil per annum, the company said in a filing with Bursa Malaysia.
The contract for the manufacturing of a specific model of cordless vacuum cleaners worth RM600mil per year for a duration of five years secured from the same customer remains unchanged.
However, the company said that due to policy changes in the hiring of foreign workers in Malaysia, the contract for manufacturing of another model of cordless vacuum cleaners worth RM400mil per year that was announced by the company on May 18, 2015 and May 20, 2015 would be discontinued in order to optimise the limited labour resources for the production of the new product.
“Having assessed the newly secured orders and discontinuation of the contract collectively, the group is confident that the overall contribution to the group’s revenue and earnings for the financial year ending March 31, 2017 remains positive,” it said.