AWARD SOON: Kunming and Sutech in the running to build
RM130m factory in Kuching
BRAHIM'S Holdings Bhd has shortlisted
two turnkey contractors from Southeast Asia to help build its RM130 million
sugar refinery in Kuching, Sarawak.
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They are Kunming Light Industrial Engineering Co Ltd of China and Sutech Group,
which has built more than half the sugar mills in Thailand.
Kunming's partner in the bid is a low-profile Sarawak-based company, people familiar with the matter said.
It is understood that a company from Germany, BMA Technology GmBH, had also made a bid but was voted out in the final selection.
Kunming's partner in the bid is a low-profile Sarawak-based company, people familiar with the matter said.
It is understood that a company from Germany, BMA Technology GmBH, had also made a bid but was voted out in the final selection.
Brahim's director Datuk
Howard Choo remained tight-lipped when asked to comment on the status of the
project.
"We have shortlisted a few parties and expect to award the job soon. We are targeting for construction to start in the current quarter and the plant to be operational by mid-2014," Choo told Business Times.
Brahim's, through its 60 per cent- owned unit Admuda Sdn Bhd, has a licence from the Ministry of International Trade and Industry (Miti) to produce refined sugar and molasses for Sabah and Sarawak.
As sugar is a regulated commodity, the licence to Admuda was the third by Miti in 37 years.
The licence is important to Brahim's as it will help reduce its dependence on airline catering, and restaurant businesses.
For fiscal 2011, Brahim's posted net profit growth of 42.4 per cent to RM9.37 million on higher revenue of RM184.46 million.
Some 75 per cent of the earnings were driven by in-flight catering services at the Kuala Lumpur International Airport and Penang Airport, and the rest from its restaurant business.
Brahim's expects earnings to surge significantly from next year when it starts selling the refined sugar under the Borneo Sugar brand.
Brahim's executive chairman, Datuk Ibrahim Ahmad Badawi had said he expected 10 per cent to 15 per cent contribution in net profit and RM250 million in revenue from the refinery in its first year of operation.
Annual demand for sugar in Sabah and Sarawak is about 350,000 tonnes, met via imports from the peninsula.
Currently, the sugar market in Malaysia is controlled by Felda Global Ventures Holdings Bhd's unit MSM Malaysia Holdings Bhd and Tan Sri Syed Mokhtar Al-Bukhary's Central Refinery Sdn Bhd, with two sugar refineries each in Peninsular Malaysia.
Brahim's is aiming to dominate Sabah and Sarawak by taking 30 per cent of the market share at the initial stage.
Its sugar refinery will have capacity to produce 100,000 tonnes a year with a potential for expansion to 400,000 tonnes per year.
Source : New Straits Times
"We have shortlisted a few parties and expect to award the job soon. We are targeting for construction to start in the current quarter and the plant to be operational by mid-2014," Choo told Business Times.
Brahim's, through its 60 per cent- owned unit Admuda Sdn Bhd, has a licence from the Ministry of International Trade and Industry (Miti) to produce refined sugar and molasses for Sabah and Sarawak.
As sugar is a regulated commodity, the licence to Admuda was the third by Miti in 37 years.
The licence is important to Brahim's as it will help reduce its dependence on airline catering, and restaurant businesses.
For fiscal 2011, Brahim's posted net profit growth of 42.4 per cent to RM9.37 million on higher revenue of RM184.46 million.
Some 75 per cent of the earnings were driven by in-flight catering services at the Kuala Lumpur International Airport and Penang Airport, and the rest from its restaurant business.
Brahim's expects earnings to surge significantly from next year when it starts selling the refined sugar under the Borneo Sugar brand.
Brahim's executive chairman, Datuk Ibrahim Ahmad Badawi had said he expected 10 per cent to 15 per cent contribution in net profit and RM250 million in revenue from the refinery in its first year of operation.
Annual demand for sugar in Sabah and Sarawak is about 350,000 tonnes, met via imports from the peninsula.
Currently, the sugar market in Malaysia is controlled by Felda Global Ventures Holdings Bhd's unit MSM Malaysia Holdings Bhd and Tan Sri Syed Mokhtar Al-Bukhary's Central Refinery Sdn Bhd, with two sugar refineries each in Peninsular Malaysia.
Brahim's is aiming to dominate Sabah and Sarawak by taking 30 per cent of the market share at the initial stage.
Its sugar refinery will have capacity to produce 100,000 tonnes a year with a potential for expansion to 400,000 tonnes per year.
Source : New Straits Times
Date : 25 January 2013
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