THE contract may not be exceptionally alluring in terms of value but at least it will enable Sarawak Consolidated Industries Bhd (SCIB), a civil engineering specialist, to showcase its prowess in the realm of industrialised building system (IBS).
Yesterday (Oct 13), the company through its wholly owned subsidiary SCIB Industrialised Building System Sdn Bhd accepted a letter of award (LOA) valued at RM13.28 mil for the re-development of two dilapidated schools (sekolah daif) in Sarawak.
The engineering, procurement, construction and commissioning (EPCC) LOA for the schools located in Kanowit near Sibu was conferred by the Sarawak Public Works Department.
It comes under Package 13 (second phase) of the RM1 bil Dilapidated School Redevelopment Project. SCIB IBS will be given eight months from October 2021 to June 2022 for the re-development of both schools.
“We expect this project to contribute positively to our financial performance over the coming quarters but more importantly, this EPCC project builds on our advantage as the largest precast concrete and IBS manufacturer in East Malaysia as there are synergies for our construction activities,” commented SCIB’s group managing director/CEO Rosland Othman.
“We will continue to leverage our experience and market presence in East Malaysia to source for business opportunities while at the same time, develop opportunities in Peninsular Malaysia as part of our growth strategy.”
As IBS becomes more accepted in the building industry, SCIB is now moving into the construction sphere, a move deemed strategic by the company as it now manufactures all the components required to construct a building – from the precast piles used in the foundation of a building to the concrete roof tiles used for the roof and all other components in between.
With its tried and tested IBS System, SCIB can leverage on the advantages of reduced manpower requirement, shorter construction period and factory-controlled product quality as an edge over its competitors.
In an unrelated development, the company also announced allotment of its third tranche placement shares of 56 million in the capital of the company to placees pursuant to the private placement exercise of up to 20% of the total number of issued SCIB shares.
To be issued at 38.39 sen/share, the placement shares will be listed today (Oct 14). Proceeds from the private placement of around RM21.5 mil will be used for upcoming projects as well as funding for ongoing projects.
At the close of yesterday’s (Oct 13) trading, SCIB was down 1 sen or 1.98% to 49.5 sen with 117.02 million shares traded, thus valuing the company at RM288 mil. – Oct 14, 2021