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Thursday, February 28, 2008

Cepco eyeing RM200mil job for Penang Bridge

KUALA LUMPUR: Concrete Engineering Products Bhd (Cepco) is confident of securing a contract worth about RM200mil to supply marine piles for the second Penang bridge project.

Cepco’s marine piles were successfully tested for the bridge project in July 2007, managing director Leong Kway Wah said.

“However, there is no indication yet. We have yet to hear if we are going to get the contract,” he said after the company AGM yesterday.

He added that Cepco was also eyeing jobs from projects to be rolled out under the Ninth Malaysia Plan and the various economic development corridors.

Leong was positive on the prospects for Cepco as the company was one of two players in the spun concrete piles market.

Cepco currently has an order book of about RM80mil that would keep the company busy for five to six months.

On new export markets, Leong said the company was in talks with parties in Canada.

“We have received enquiries from Canada on supplying materials for the construction of an indoor stadium for the 2010 Winter Olympics,” he said.

He said the award of the contract would be confirmed by the end of this month.

At present, the company already exports concrete piles to Iran.

“Currently, we have an existing order to supply marine piles worth RM15mil for an ongoing project in Iran,” he said.

Leong said revenue contribution from exports contributed 15% to total group revenue.

“We would like to increase our export market share but have to consider the problem of logistics especially with the increase in the price of fuel, which has impacted transportation cost,” he said.

On the rising price of raw materials like steel and cement, Leong said that this would affect the company’s bottom line as the company was not able to transfer the cost to customers fast enough.

He said Cepco’s strategy would be to anticipate the higher prices and factor them into its prices as well as to source for cheaper raw materials from external suppliers.

By The Star

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