UMW enters a long-term service agreement worth RM50mil with IOI

IOI Plantation Services Sdn Bhd mills & engineering (Sabah) general manager Raymond Herbertson (left) and UMW Industrial Power Services Sdn Bhd general manager Roslan Yahaya (right).

KUALA LUMPUR: UMW Group’s wholly owned subsidiary, UMW Industrial Power Services Sdn Bhd (UIPS) has signed a long-term service agreement (LTSA) with IOI Corp Bhd’s plantation business valued at RM50mil.

UIPS is an authorised distributor of INNIO’s Jenbacher engines in Malaysia.

The agreement will see UIPS providing maintenance services for seven units of Jenbacher biogas engines installed at IOI Plantation Services Sdn Bhd’s seven palm oil mills in Lahad Datu and Sandakan in Sabah.

The seven Jenbacher biogas engines have a total generation capacity of 5,523kW of power. The power generated will be utilised for the operations at the mills, living quarters as well as for auxiliary usage.

UMW said the LTSA would cover two life cycles of the seven biogas engines and engine block replacement and the scope of work included services and maintenance for the engines for a duration of 16 years. The scheduled maintenance is aimed at achieving an optimum capacity of 7,000 operating hours annually.

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