KUALA LUMPUR (Sept 22): Seremban Engineering Bhd has bagged a subcontract work worth RM72 million from MIE Industrial Sdn Bhd, to supply, fabricate, and install steel structures for a factory project in Seremban.

It should be noted that MIE Industrial is the largest shareholder of Seremban Engineering, holding a 69.72% stake in the company as at Oct 1, 2021, according to the group’s 2021 annual report.

The contract was for the construction of structural steel works for the SDIEM Complex 2 Factory Project (Zone A). The SDIEM Complex 2 refers to the Samsung SDI Energy Malaysia Sdn Bhd's factory complex, which is currently being expanded for the manufacturing of battery cells for electric vehicles.

“As part of the group synergy and in furtherance of the shareholders’ mandate for the recurrent related party transaction (RRPT) of a revenue or trading in nature (RRPT mandate), MIE Industrial, being the major shareholder of the company, has awarded to Seremban Engineering the contract works (including the contract) for up to RM204.89 million in value as at the date of this announcement,” the group’s filing with Bursa Malaysia showed.

Seremban Engineering said the duration of the contract is determined based on the overall period of completion of 10 months from the date of commencement of work, which is expected to commence on Sept 26, 2022 and to be completed on May 30, 2023 or within any extended period.

The group added that the contract will be funded via internally generated funds and project financing as and when required.

Shares in Seremban Engineering closed up one sen or 0.84% to RM1.20, giving it a market capitalisation of RM96 million.