PETALING JAYA: Integrated engineering solutions provider Kelington Group Bhd, through wholly owned subsidiary Kelington Engineering (S) Pte Ltd, has accepted a letter of award (LoA) worth US$105 million (RM413.7 million) to deliver a turnkey solution for a gas distribution system project for a semiconductor wafer fabrication facility in Gujarat, India.
The LoA was awarded by a leading semiconductor manufacturer in India and involves the delivery of a comprehensive gas distribution system as part of the project’s mission-critical infrastructure.
Semiconductor fabrication processes require a continuous and highly controlled supply of ultra-high-purity gases to ensure precision, yield, and operational reliability.
Works will begin immediately and are scheduled for completion by July 2028.
Kelington CEO Lim Seng Chuan said the project is India’s first pure-play semiconductor foundry, backed by strong government capital funding and support, including commitments to ensure reliable infrastructure, such as power and water supply.
“These factors provide a strong foundation for the successful execution and delivery of the project.
“This marks a significant milestone and a breakthrough for the group as we secure our first major contract in India’s semiconductor sector, positioning the group at an early stage of a high-growth market with strong long-term opportunities,“ he said.
Lim said this contract award reinforces confidence in the group’s ability to deliver highly specialised and mission-critical infrastructure, built on its proven track record across established semiconductor hubs in China, Singapore, Malaysia, and Europe.
“We are confident of replicating our execution capabilities in India and will work closely with our client and project partners to ensure the successful and timely delivery of the facility.”
Kelington earlier secured a purchase order for the supply of gas distribution system gas purifiers, worth US$10.4 million, for the same facility, which brings the total contract wins to US$115.4 million for the facility.
The group has also secured three letters of intent amounting to US$17 million for additional scope at the same facility, with final terms and conditions currently being formalised, further expanding the group’s potential participation in the development.
“These additional pipeline opportunities reflect our client’s confidence in our technical capabilities and execution track record.
“We are encouraged by the expanding scope of our involvement and remain focused on converting these opportunities into firm contracts as the project progresses,“ Lim said.
Year to date, the group has secured new contracts totalling about RM555 million.
Together with its outstanding order book of RM1.4 billion as of Dec 31, 2025, this provides strong earnings visibility in the coming years.
