MBM Resources Bhd
(RM4.68/share)
Federal Auto to be
sole Volvo dealer
Wearnes Automotive Group’s local unit Swedish Marque Sdn Bhd
will cease as a Volvo dealer in Malaysia by June 30, leaving MBM Resources Bhd
subsidiary Federal Auto Cars Sdn Bhd as the sole dealer in Peninsular Malaysia.
Wearnes Automotive is the largest distributor of Volvo vehicles in Southeast
Asia. However, Federal Auto, which has been selling Volvos in Malaysia since
1960, has had the lion’s share of the Volvo market. According to MBM Resources CEO Looi Kok Loon, Federal Auto
last year sold 579 Volvo units in Malaysia, taking 70% of the market share. MBM’s
grasp on Volvo sales could also prove to be very lucrative. Volvo, which is now
owned by Chinese carmaker Geely Group, plans to expand capacity in the region
and expects a turnaround in the current lacklustre demand for its products in
Malaysia. – The Edge
Construction
Sector
Ipoh-Padang Besar
rail project hits snag?
The Ipoh-Padang Besar Electrified Double Track project
(EDTP) has hit a snag over price due to cost overrun and the main contractor
may ask RM1.5bil in variation order (VO) claims from the government. It is understood that MMC-Gamuda
Joint Venture Sdn Bhd, the main contractor for the project, has also asked the
government to extend the time to complete the job to 2015 or 2016. Sources said
the government has yet to approve the extension request. MMC-Gamuda was awarded
the northern sector EDTP contract in December 2007 for RM12.5bil. The job was
initially slated for completion in January 2013, but due to impending land
acquisition issues, the government has given an extension for the project
completion until end-2014. A source said the total project cost is expected to
escalate to about RM14.0bil because of the two-year delay. It is believed that
MMC-Gamuda will submit the VO claims to the government later. The source said
there is already cost overrun for the project, which is halfway completed. The civil
works are 70% completed, and the systems side, only 30%. There are still land
issues and other unresolved matters on MMC-Gamuda JV’s part. – Business Times
Construction
Sector
SEB opens 3 more
power transmission line projects for bidding
Sarawak Energy Bhd (SEB) has dished out three more power
transmission line projects for open bidding, including a 275kV line from
Mambong near here to neighbouring West Kalimantan to facilitate the export of
electricity to the Indonesian province. The 45km line will take 22 months to
construct and tender for the project closes on July 2. The other two 275kV
transmission lines will supply electricity from SEB Samalaju substation to OM
Materials (Sarawak) Sdn Bhds proposed manganese and ferro alloy smelting plant
and Japan’s Tokuyama Corp polycrystalline silicon plant (phase II), both in
Samalaju Industrial Park, Bintulu. Tenders for the Tokuyama (phase II)
transmission line project are being evaluated. The 132kV transmission line to
its phase I project is near completion. SEB is expected to award soon the
contract for the construction of a 500kV backbone line stretching from
Similajau, Bintulu to Kuching. It is now carrying out evaluations on the bidding
companies. According to SEB chief executive officer Torstein Dale Sjotveit, the
500kV backbone line would cost about RM3.0bil. It is expected to be ready in 2014.
Sjotveit had said recently that SEB would call for tenders to construct a
proposed 600-MW coal-fired power station in Balingian, Mukah Division this
year. SEB now owns a 270-MW coal-fired station in Mukah. He has said that SEBs
2012 priorities included accelerating the next round of power generation
projects. - StarBiz
Source: AmeSecurities
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