CB Industrial bags palm oil mill contracts worth RM131.7mil in Indonesia

KUALA LUMPUR: CB Industrial Product Holding Bhd (CBIP) told the exchange today that it has secured new contracts in Indonesia, boosting its palm oil mill project order book.

Wholly-owned subsidiary, PalmitEco Engineering Sdn Bhd, bagged three contracts from PT Kodeco Agrojaya Mandiri worth RM86.96mil.

In a filing with Bursa Malaysia today, CBIPH said the contracts were for the design, construction and completion of a conventional palm oil mill, a kernel crushing plant and a 1,600 kilowatt biogas power generator plant to be completed in 16 months.

CBIPH said a unit also entered into a RM44.75mil contract with PT Sanjung Makmur to design, manufacture and maintain a continuous sterilization palm oil mill within 18 months from the date of the contract.

Upon completion, the mill would be capable of processing 45 metric tonnes of fresh fruit bunches per hour.

CBIPH said all four contracts were expected to contribute positively to the group's earnings and net assets per share for the financial year ending Dec 31, 2019 onwards until completion of the contract.

“The company does not foresee any exceptional risk other than the normal operational risks associated with the contract,” it added.