Kelington, the integrated engineering solution provider, has received a Letter of Award from Hanwha Q CELLS Malaysia Sdn Bhd for the onsite supply of nitrogen (N2).
The contract was awarded to Ace Gases Marketing Sdn Bhd, a subsidiarity of Kelington.
Under the contract, Kelington will setup an onsite generator to produce N2 at the Hanwha Q CELLS’ manufacturing plant in Cyberjaya, Malaysia. In return, Hanwha Q CELLS will pay a fixed facility fee amounting to approximately RM20m ($4m) over a period of ten years.
Hanwha Q CELLS is one of the world’s largest manufacturers of solar cells and modules and uses N2 in its manufacturing process.
Ir. Raymond Gan, CEO of Kelington Group Berhad said, “Our expansion plan into a recurring long-term business is taking place as planned. This is our first industrial gas supply contract, marking our successful foray into this new area. This new business is long-term in nature and would add a stable and recurring income stream to the Group. It would enhance our earnings visibility, providing sustainable returns to our shareholders.”
“Under the Group’s business model in growing this division, industrial gases can be supplied on-site via gas generators or via high-pressure gas cylinders. This business has attractive future prospects as it can be widely applied across manufacturers in the electronic, plantation, oil and gas, and food and beverage sectors.”
“This new venture is synergistic to our core business as we would be able to leverage on our strong client network of electronic manufacturers which we have built up over the last 16 years,” he added further.