KUALA LUMPUR (Nov 21): Hock Seng Lee Bhd (HSL) has bagged a RM56.6 million contract from X-FAB Sarawak Sdn Bhd to undertake renovation and extension works to an existing three-storey X-FAB administration building with associated external works at Sama Jaya Free Industrial Zone in Kuching, Sarawak.

In a filing with Bursa Malaysia, HSL said it has received the letter of acceptance from X-FAB Sarawak for the building construction project, following an open tender exercise.

X-FAB Sarawak is 93.6%-owned by Belgium-based X-FAB Silicon Foundaries NV.

HSL said its success in the open tender exercise was mainly premised on its superior vibration control management, which is critical in this project, as the ongoing manufacturing activities involves high precision and has very low tolerance to any kind of environmental vibration.

"The scope of works for HSL includes pilling, building works (both new construction and renovation and refurbishment of existing buildings) and the associated mechanical and electrical works," the filing said.

HSL noted it is a fast track project with a contract period of 19 months, and is expected to commence in December this year.

"The contract is expected to contribute positively to the earnings and net assets of HSL group, as the project progresses during the contract period," the filing added.

HSL shares closed three sen lower or 2.04% to RM1.44 today, for a market capitalisation of RM791.31 million. Over the past 12 months, the stock has fallen 14%. — theedgemarkets.com

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