business

Leform's unit secured RM10.05mil contract from Ganda Imbuhan

KUALA LUMPUR: Leform Bhd's 60 per cent-owned subsidiary, LF Engineering Sdn Bhd (LFE), has secured an RM10.05 million contract from Ganda Imbuhan Sdn Bhd to supply highway infrastructure for the West Coast Expressway (WCE).

In a statement today, the integrated steel products manufacturer and trader said the contract involved the supply and installation of guardrails for Section 6 of the WCE that connects from Kapar Interchange to Assam Jawa Interchange.

The WCE is a 233-kilometre expressway that is being built on the West Coast of Peninsula Malaysia, connecting Taiping, Perak, to Banting, Selangor. 

It will be the third longest highway in Peninsular Malaysia after the 966-kilometre North-South Expressway and 330-kilometre East Coast Highway.

Managing director Law Kok Thye said the milestone is meaningful for the company as it is the first contract Leform has secured as a listed entity. 

"We are pleased to have secured a new contract within a month after our listing. It signifies the trust placed in our group's capabilities in producing quality steel products to meet the requirements of our customers," he said.

Law added that the contract will contribute positively to Leform's earnings up to the financial year ending December 31, 2023. 

"Given our technical expertise and long track record in the steel industry, we are confident we stand a good chance to clinch more projects in the coming days.

"At the same time, we are executing our expansion plan, which includes the construction of a new warehouse storage facility. 

"This is expected to scale up our storage area and operational efficiency while allowing us to expand our product variety to include thicker gauge steel pipes. 

"As we move forward, our capability to cater for higher production volume certainly bodes well with the optimistic backdrop of the expected rising steel consumption driven by the recovery in manufacturing and construction industries," he added.

Leform was listed on the ACE Market of Bursa Malaysia on November 30, 2022. 

The company had successfully raised RM71.53 million from the public issue under its initial public offering (IPO) to facilitate its expansion plans.

It added that the contract is expected to be completed by June 30, 2023.

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