KHIB's Unit Awards RM5.4 Mln Construction Contract In Vietnam

KUALA LUMPUR, May 19 (Bernama) -- Kein Hing International Bhd's (KHIB) wholly-owned unit, Kein Hing Thai Nguyen (Vietnam) Co Ltd (KHTV), has awarded a RM5.4 million (about US$1.2 million) construction contract to a third party main contractor in Vietnam for the construction of a single-storey factory at the Diem Thuy Industrial Park. In a filing to Bursa Malaysia Friday, KHIB said the proposed construction is expected to commence this month and be completed by October this year. "The proposed construction, with a total built-up of about 19,000 sq ft will cater for the future expansion plans of the KHIB Group in Vietnam, particularly the business of metal stamping, precision machining, assembly of components and fabrication of tools and dies," it added. KHIB said with the proposed construction, the group production and warehouse space is expected to increase by about five per cent against current capacity. It also said the growth in customer demand for parts and metal components in Vietnam had created a great opportunity for the group to expand the manufacturing business. “The proposed construction is also an expansion and extension of the existing business of Kein Hing Muramoto (Vietnam) Co., Ltd, a 51 per cent-owned unit of KHIB in Vietnam," KHIB added. It said the proposed construction would not have any material effect on earnings per share and net assets per share of the group. -- BERNAMA