PETALING JAYA: Kelington Group Bhd
, via its wholly-owned subsidiary Kelington Engineering (Germany) GmbH (KEGG), has accepted a letter of intent (LOI) for a semiconductor hook-up project in Dresden, Germany.
Based on the estimated scope for the first phase, the integrated engineering solutions provider said the total contract value is estimated at a minimum of €30mil (approximately RM146mil), with the potential to increase to €50mil, subject to the final configuration to be determined by the client.
The LOI establishes a framework for detailed discussions on KEGG’s provision of hook-up services for key process systems involving specialty gases, chemicals, slurry, bulk gases, process vacuum and ultra-pure water.
“It also sets out the agreed unit pricing structure and price adjustment clauses, which will remain in effect until 2027.
“This long-term arrangement positions KEGG to undertake follow-on work as this semiconductor wafer fabrication plant expands, without the need for renegotiation on core pricing terms.”
Kelington said the LOI marks its major entry into the European market.
