KUALA LUMPUR: Ageson Bhd claims to have secured an order worth a whopping RM27.5 billion from Guangzhou Kaishengda Industrial Co Ltd (GKI).
Ageson, in a Bursa Malaysia filing today, said its subsidiary Esa Pile Sdn Bhd Eould would supply river and sea sand to GKI for 15 years at a value of
44.8 billion renminbi.
Ageson said it would begin supplying river and sea sand to GKI in the third-quarter of this year.
"Demand capacity comprises 50 million cubic metre per year of river sand and 100 million cubic metre per year of sea sand for a duration of 15 years," it said.
Ageson said the contract would strengthen its international export market and trading business for sustainable earnings over long period, while creating synergistic business opportunities with GKI.
"The contract is not expected to have an impact on the gearing of the group for the financial year ending June 30, 2020."
Ageson said the mining capacity would include 30,000 cubic metres per hour, equivalent to 180 million cubic metres per year, while the transport capacity requires about 4,500 shipments per year or 50,000 tonnes per shipment.
Esa Pile is principally involved in sand trading and construction related works, while GKI inolves in wholesales and trading of non-metallic mineral products.