KUALA LUMPUR: Kawan Renergy Berhad, an engineering solutions provider, has announced that its wholly-owned subsidiary, Kawan Engineering Sdn Bhd, has secured an RM11.8 million contract from Chemical Industries (Malaya) Sdn Bhd (CIM). This contract involves the fabrication and installation services required to convert CIM’s bioethanol plant in Ipoh, Perak, from using molasses to corn as feedstock. The project is set to commence on July 1, 2024, and is expected to be completed within four months. This follows a previous RM2.2 million contract awarded by CIM in May 2024 for the design, supply, and installation of steel structures for the intake and milling plant.
Kawan Renergy’s Managing Director, Ir. Lim Thou Lai, commented, “Winning this contract from CIM, a leading ethanol producer, underscores our technical expertise in delivering innovative and high-quality engineering solutions, and enhances our reputation in the industry.”
The Group’s order book currently stands at RM138.3 million, encompassing various projects such as industrial process equipment, process plants, and renewable energy and cogeneration plants. Following its recent listing on the ACE Market of Bursa Securities on May 29, 2024, which raised RM33.0 million for expansion, Kawan Renergy reported a half-year revenue of RM42.1 million and a profit after tax (PAT) of RM8.6 million for the period ending April 30, 2024. This PAT represents over 50% of the previous year’s total PAT of RM13.3 million.
Ir. Lim added, “The outlook remains positive as the demand for renewable energy and cogeneration plants grows, driven by companies’ efforts to improve energy efficiency and reduce carbon footprints. We are also preparing to enter the independent power producer (IPP) sector, focusing on biogas and biomass power plants. This strategic expansion will capitalize on our technical expertise and generate recurring revenue through the development and management of our own energy projects.”
