In a filing with Bursa Malaysia, KPS said the contract will run for 14 months from Nov 1, 2021 to Dec 31, 2022.
"The contract, which was secured via an open tender, bears an option for extension upon request by Air Selangor," it said.
The company said the contract is expected to contribute positively to KPS net assets and earnings starting from financial years ending Dec 31, 2021 to 2022.
Managing director and group chief executive officer Ahmad Fariz Hassan said the increasing demand for chemicals by the largest water operator in Malaysia display Air Selangor’s confidence in Aqua-Flo’s playing an important role in ensuring the sustainability of clean and safe water supply in Selangor.
"Backed by our consistent track record in providing quality products at competitive prices, the new contract cements further Aqua-Flo’s status as one of the market leaders in the supply of water treatment chemicals in the country," he said.
Aqua-Flo had earlier won a two-year contract worth RM162.5 million by Air Selangor from Nov 1, 2018 until Oct 31, 2020, which was later extended for another 12 months until Oct 31, 2021 for an additional RM81.2 million.
Moving forward, KPS expects organic growth in Aqua-Flo’s order book as it continues to strengthen the traction in its chemical sales as well as increase revenue from the water meter and equipment business segments from the existing and new customers.
Aqua-Flo is a local pioneer in the provision and supply of chemicals to water, waste and sewage treatment industries which supplies chemicals such as liquid chlorine, polyaluminium chloride and hydrated lime and liquid alum.