TIMBER-BASED NWP Holdings Bhd has secured a two-year contract valued at RM36 mil for a marine sand mining and transportation project in Melaka in collaboration with Gezhouba Engineering (M) Sdn Bhd via its indirect subsidiary NOOA Marine Sdn Bhd.
Gezhouba Engineering which was established in Malaysia on October 13, 2014 is a wholly owned subsidiary of China’s Gezhouba Group International Engineering Co which in turn is a wholly-owned subsidiary of China Gezhouba Group Co Ltd, a listed company within Energy China. It has a strong track record in the construction industry.
Located in the Melaka sea area, the project will entail NOOA Marine deploying a fleet of engineering vessels as required for mining tasks.
These vessels will enter the designated sea area to extract marine sand and transport it to the specified location directed by Gezhouba Engineering where it will be discharged or unloaded from the barge.
Throughout the project management and implementation process, NOOA Marine will adhere to all management directives, arrangements and instructions provided by Gezhouba Engineering.
As stated in a filing with Bursa Malaysia, the project’s service period spans two years with the specific commencement date to be determined by Gezhouba Engineering’s notice.
This can be extended for an additional two years with mutual consent from both parties three months before the initial two-year term expires. However, the total service period must not exceed four years.
It added that the estimated value of the two-year contract is RM36 mil while the four-year contract is tentatively set at RM72 mil. The contract operates on a fixed unit price basis with the unit price encompassing all work and expenses related to project implementation.
“We are thrilled to embark on this significant marine sand mining and transportation project in collaboration with Gezhouba Engineering,” commented NWP’s non-executive chairman Datuk Tan Lik Houe.
“This venture represents a remarkable milestone for our group and aligns with our strategic objectives to diversify our business and strengthen our position in the market.”
Similarly, NWP’s executive director Tan Jyy Yeen echoed the enthusiasm of its chairman.
“We believe this project will greatly contribute to the growth and expansion of our revenue streams, ultimately boosting the group’s overall financial performance,” she projected.
“As we navigate the challenges of the global economy, this collaboration signifies our commitment to seeking new opportunities, fostering innovation, and delivering long-term value to our shareholders.”
Ultimately, both Lik Houe and Jyy Yeen are confident that the project will boost the NWP group’s track record given it is in line with the group’s objective to diversify its business operations.
At the close of today’s trading, NWP was down 0.5 sen or 2.22% to 22 sen with 30.1 million shares traded, thus valuing the company at RM127 mil. – April 7, 2023
