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CBIP bags RM71m palm oil mills job in PNG

The Edge logo The Edge 16/4/2019 Tan Xue Ying
a pile of fruit © Provided by The Edge Communications Sdn Mhd

KUALA LUMPUR: Palm oil equipment manufacturer CB Industrial Product Holding Bhd (CBIP) said its unit has been awarded a contract worth RM71.17 million to build palm oil mills in Papua New Guinea’s (PNG) Markham Valley.

In an exchange filing yesterday, CBIP said its wholly-owned PalmitEco Engineering Sdn Bhd has received a letter of acceptance (LoA) from New Britain Palm Oil Ltd (NBPOL) for the job. NBPOL is a subsidiary of Sime Darby Plantation Sdn Bhd.

Under the LoA, PalmitEco Engineering is to design, supply, instal, commission and complete the construction of a 10 tonne per hour (TPH) continuous sterilisation mini mill, and a 40/60 TPH continuous sterilisation palm oil mill in Markham Valley.

CBIP said work for the 10TPH mill is targeted to be completed by November this year, while work for the 40/60 TPH mill is targeted for completion by February 2021.

The job is expected to contribute positively to the group’s earnings and net asset per share for the financial year ending Dec 31, 2019 onwards, until completion of the work.

CBIP shares closed unchanged at RM1.08 yesterday, with a market capitalisation of RM550.65 million. The stock has retreated over 26% in the past year.

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