Hong Leong Asia (HLA), a subsidiary of Singapore’s Hong Leong Group, has been awarded an exclusive contract to supply ready-mixed concrete to the Marina Bay Sands integrated resort (IR). The contract could be worth as much as $210 million.
Under the contract, HLA will supply about 800,000-1.2 million cubic metres of ready-mixed concrete for the construction of the IR until it is completed in 2009, the company said yesterday.
While HLA declined to provide the value of the contract, industry players said that price of a cubic metre of ready-mixed concrete ranges between $167-$175 at present. HLA’s contract could, therefore, be worth anything between $133.6-$210 million depending on the price of and amount of ready-mixed concrete it supplies.
‘This award, as the sole supplier of ready-mix concrete to the Marina Bay Sands integrated resort, will have a positive effect on the group’s building materials unit,’ said HLA CEO Teo Tong Kooi.
The contract from Marina Bay Sands follows an earlier one awarded to CSC Holdings subsidiary L&M Foundation Specialist Pte Ltd. Last month, CSC Holdings won a $240 million deal for piling and diaphragm walls for the IR.
Contracts awarded by the IR are expected to boost the construction sector here - set to grow in 2007 after years of being in the doldrums. Industry regulator Building and Construction Authority expects deals awarded here to reach $17-19 billion this year. HLA’s shares climbed 10 cents to close at $2.73 yesterday. The stock has surged 60.6 per cent since the start of the year.
Source: The Business Times, 02 June 2007
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