Sarawak Consolidated clinches RM707m contracts in Abu Dhabi, Malaysia and Indonesia

PETALING JAYA: Sarawak Consolidated Industries Bhd has secured three engineering, procurement, construction and commissioning (EPCC) contracts – in Abu Dhabi, Malaysia and Indonesia – with an estimated total value of RM707.24 million.

According to the group’s Bursa Malaysia filing, its wholly owned subsidiary, SCIB International (Labuan) Ltd (SILL), has received a letter of award from PT Cipta Multi Sarana for earthworks for the Prabumulih-Muara Enim toll road construction project in Indonesia for an estimated contract value of US$13.26 million (RM55.59 million). The contract will run for seven months from October 2020 to April 2021.

In addition to this, SILL has entered into recurrent related party transactions with Serba Dinamik Holdings Bhd’s subsidiary for an EPCC contract of a hybrid mall and management/sales office in Abu Dhabi for a contract sum of US$145 million (RM607.78 million). Work for this project will start in October 2020 and end in September 2024.

Meanwhile, Sarawak Consolidated’s SCIB Industrialised Building System Sdn Bhd (SIBS) has been awarded a piling work contract for a strata development project in Kota Tinggi, Johor, by a Serba Dinamik subsidiary for a contract sum of RM43.88 million. Work will last from October 2020 to May 2021.

The group’s CEO and managing director, Rosland Othman, said the three contracts will strengthen Sarawak Consolidated’s order book and financial position.

“These latest projects also show that we are diversifying geographically as two of the projects are located outside of Malaysia,” he said in a press release.

Sarawak Consolidated pointed out that the projects awarded by Serba Dinamik are considered related-party transactions as Datuk Mohd Abdul Karim Abdullah is the non-independent non-executive chairman and major shareholder of the group.

At the same time he is the managing director, CEO and major shareholder of Serba Dinamik and is deemed to be interested in the contracts awarded.

source https://www.thesundaily.my/business/sarawak-consolidated-clinches-rm707m-contracts-in-abu-dhabi-malaysia-and-indonesia-GB3535910