KUALA LUMPUR: Boustead Heavy Industries Corp Bhd's (BHIC) subsidiary BHIC AeroServices Sdn Bhd has received a five-year helicopter services contract worth RM378 million from the Ministry of Defence (MinDef).
BHICAS will provide a range of services via in-service support (ISS) to the Royal Malaysian Air Force (RMAF) EC725 helicopter.
BHIC AeroServices is a 51:30:19 joint venture company between BHIC's wholly-owned BHIC Defence Technologies Sdn Bhd (which owns 51 per cent equity), Prestige Pillar Sdn Bhd (30 per cent) and Airbus Helicopter Malaysia Sdn Bhd (19 per cent).
The contract commences from the date of acceptance and signing of the letter of award by BHIC AeroServices.
BHIC expects it to contribute positively to its earnings for the financial years 2024 to 2029.
BHIC AeroServices chief executive officer Sevvale Sarvaesvaran said the contract stands as testimony to the confidence and trust that Mindef has in its capability as the preferred MRO centre for Airbus EC725 helicopters in Malaysia.
"The contract should further strengthen the position of BHIC AeroServices especially in providing maintenance, repair and overhaul (MRO) services to Airbus Helicopter's products," he added.
BHIC chief executive officer Feroz Razi Ramli said the contract reflects the government's confidence in the group's ability to maintain the nation's military assets.
"This contact will contribute positively to the group's earnings in the next five years, further solidifying our financial stability and growth prospects," he said.
In July 2023, Mindef awarded BHIC AeroServices a supplemental 12-month extension contract with additional ceiling contract worth RM115.3 million to provide maintenance and supply of spares via ISS for the same helicopters.
The additional contract came with an extension from April 1, 2023 to March 31, 2024.
Its facilities in Malaysian International Aerospace Centre in Subang, Selangor is the only one-stop Airbus Helicopter Service Centre in Malaysia.
It provides comprehensive MRO services and after-sales support covering maintenance, spare parts sales, refurbishment, modification, technical support and training.