Kuala Lumpur, April 4 – Integrated engineering solutions provider, Kelington Group Bhd’s wholly-owned subsidiary, Kelington Engineering (Shanghai) Co. Ltd. has secured two new contracts from China amounting to RM19.3 million for the installation of ultra high purity gas delivery systems.
The two contracts awarded by global MNC semiconductor manufacturers will commence immediately and are expected to be completed by December 2017.
Together with these two contracts, the Group has secured a total of RM76.05 million worth of new orders in the first quarter of 2017. Kelington’s current outstanding orderbook now stands at RM239.3 million.
Kelington has an established track record in providing specialised engineering services for ultra high purity (UHP) gas solutions which is primarily used by the semiconductor and other high technology manufacturers.
Ir. Raymond Gan, Chief Executive Officer of Kelington Group Berhad said, “The contracts are awarded by repeat customers of the Group, demonstrating our capabilities in meeting the stringent requirement of global MNCs. We are very encouraged by the support of our customers, and are well positioned for growth in 2017.”
“Under the Made in China 2025 initiative, China aims to become a superpower in the manufacturing of high technology industries by 2025. The China government is undergoing a significant capacity expansion growth and is expected to invest heavily to increase its production of memory chips and semiconductors.”
“According to industry reports, China aims to produce 70% of its total consumption of integrated circuits, from approximately 10% now. This augurs well for players like us as we aim to gain a share of the capex expansion activities of these technology players,” he added further.
The Group is optimistic that it will be positively impacted by the expected capacity expansion growth in the China electronics market.