KUALA LUMPUR: Seremban Engineering Bhd
(SEB) has been awarded two projects worth a total of RM172.60 million from Dutch Lady Milk Industries Bhd (Dutch Lady).
The first project (CO3) entails civil, structural and architecture works worth RM108.8 million, while the second project (CO4) involves mechanical, electrical and plumbing works valued at RM63.8 million for a new manufacturing plant in Bandar Enstek Industrial Estate, Nilai, Negeri Sembilan.
In a filing with Bursa Malaysia, SEB said works under CO3 commenced on Feb 7, 2022 and will take 382 days to be completed, while CO4, which began on March 15, 2022, would take 322 days.
"Barring unforeseen circumstances, the contracts are expected to contribute positively towards the earnings and net assets per share of the company over the duration of the contract.
"The contracts will be funded via internally generated funds and external bank borrowings," it said.
Meanwhile, SEB had awarded its major shareholder, MIE Industrial Sdn Bhd, a related works contract worth RM115 million.
The contract entails the design and building of temporary construction facilities, provision of operation and maintenance services, as well as civil and architectural works for CO3, and mechanical, electrical and plumbing works for CO4.
In a separate filing, SEB said it had accepted additional banking facilities amounting to RM80 million from United Overseas Bank (Malaysia) Bhd.
It will utilise the financing facilities for the purchase of materials, issuance of performance bond, warranty bond and guarantees in relation to the contracts awarded by Dutch Lady, as well as for working capital requirement.
"The facilities are not expected to have significant effect on the earnings, consolidated net assets and consolidated gearing of the company and its subsidiaries for the financial year ending June 30, 2022,” it added. - Bernama
