An ultra high purity gas and chemical delivery solutions provider, is ready to become a major EPCC contractor.
It had bagged a sizeable EPCC contract from BASF Petronas Chemicals Sdn Bhd for Package 1 of its rm1.6 billion aromas production facility in Gebeng, Kuantan. The job has given Kelington access to the chemical processing sector.
It has pinned its hopes on also securing Packages 2 and 3, which are larger contracts.
The group has also set its sights on EPCC works in the RAPID project.
It is poised to report strong earnings in FY2014 having benefited from a recovery in its core semiconductor business and diversification efforts over the last two years (2012-2013), which saw it increasing its exposure to the healthcare, oil and gas and palm oil industries.
Following the diversification, it can now better respond to market fluctuations in the semiconductor industry.
The group went through hard times in FY2012 and Fy2013 when the semiconductor industry slowed, causing its order book to drop and its earnings to dip.
It diversified into other industries while still maintaining the semiconductor market as one of its main contributors.
KGB’s existing relationship with IHC to land more projects as the healthcare service provider has another two hospital projects in Malaysia in KLCC and Iskandar Malaysia.
It had secured a LOI for the hospital project in KLCC worth rm77 million.
The group is also intent on making renewable energy a major source of profit in the long term. It has set up a subsidiary in Papua New Guinea to provide RE services as solar which has also similar plans in Indonesia.
Its order book stood at rm188 million.
KGB is 47% owned by Palace Star Sdn Bhd. The remaining 40% is owned by others include LTH with a 12.36% stake and Sun Lead International Ltd with a 9.19%.