KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) has secured a contract worth a total of RM1.23bil from the Government to provide refit services for two units of submarines.
In a filing with Bursa Malaysia, BHIC said Boustead DCNS Naval Corp Sdn Bhd (BDNC), a joint venture between BHIC Defence Technologies Sdn Bhd (60%), a wholly owned subsidiary of BHIC, and DCNS S.A (40%), had received and accepted a letter of acceptance (LoA) from the Government.
“The purpose of the LoA was to award BDNC a contract for the provision of refit services for two units of Prime Minister’s Class Submarines for the Royal Malaysian Navy at a total dual currency contract price of 169.85 million euros (RM800mil) and RM432.4mil, effective from Nov 1,” BHIC said.
The contractual refit period for each submarine is 18 months from the respective start date for the relevant submarine refit.
The company said the statement that the LoA would have a material effect on the earnings of the BHIC group for the financial year ending Dec 31, 2015, and will contribute positively to its future earnings.
“We are pleased to receive this refit contract, which extends our stewardship of the Royal Malaysian Navy’s submarines beyond our in-service support duties.
“The defence industry is vital for national security and the maintenance of strategic assets is an essential element of that objective; we are honoured to be entrusted with this vital responsibility,” BHIC’s executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said.
