Econpile issues termination notice to Gabungan Strategik

KUALA LUMPUR: Econpile Holdings Bhd' wholly owned subsidiary Econpile (M) Sdn Bhd’s (EMSB) joint venture partner, China Communication Construction Company (M) Sdn Bhd (CCCC) has issued a notice of termination to Gabungan Strategik Sdn Bhd (GSSB), being the work package contractor, for breach of the sub-contract.

In a filing with Bursa Malaysia today, Econpile said the sub-contract breach was for the execution and completion of foundation, substructures and other ancillary works for Projek Penswastaan Lebuhraya Bertingkat Sungai Besi-Ulu Kelang Package CA3 - Construction and Completion of Mainline and Other Associated Works from CH.4200 to CH.7800.

It said due to the preliminary status of the matter, the financial impact arising from the termination is still being assessed and cannot be ascertained as yet.

"The termination is not expected to have any operational impact to the company," it added.

By a letter of award dated Dec 22, 2016, GSSB had awarded to CCCC and EMSB the sub-contract for RM389.07 million. - Bernama