KUALA LUMPUR: Daya Materials Bhd has been awarded a 17.7 million euro (RM88mil) contract to provide marine heating, ventilating and air-conditioning (HVAC) equipment and services for six navy vessels.
In its filing with Bursa Malaysia, Daya said its unit – Daya OCI Sdn Bhd – was awarded the contract by France-based Axima Concept Sa, a subsidiary of energy company Engie, formerly known as GDF Suez.
The contract for the six vessels based at Lumut is effective from 2015 until 2021.
“We see this business unit as something that we can grow. We are putting in our experience in maintaining HVAC systems, as well as our involvement in vessels, into this job. So, we see the potential to go into maintenance of HVAC systems for vessels as well,” group chief executive officer Datuk Lim Thean Shiang told StarBiz.
He added that the focus of this business would be for navy vessels.
Daya OCI has already been providing comprehensive maintenance for the HVAC system at KLCC towers. But this would be the first time Daya OCI would be providing that service for navy vessels.
Daya OCI chief executive officer Zaidi Ayub said Daya OCI’s execution partner Axima would carry out the design of the HVAC system, but would hand over parts of the design process to the former.
The design part of the project had already been carried out, he said. “What is left is the fabrication, installation and commissioning. About 60% of the work will be conducted locally,” he said.
The vessels would need to be ready for handover before Daya can start work.
In 2011, Boustead Heavy Industries Corp Bhd’s unit – Boustead Naval Shipyard Sdn Bhd – had finalised negotiations with the Government to build six littoral combat ships for the Royal Malaysian Navy at its Lumut shipyard for RM9bil.
Lim added that Daya would work with Axima to look at working together on a long-term basis. “This is so we can get all the knowledge and technology transfer and know-how so that they can guide and groom us so we can convert it into local content,” he said.
Axima is the leading company in France specialising in HVAC engineering in the health, maritime and nuclear industries, among others.
The contract will contribute about 3% to Daya’s overall revenue for the duration of the project.
He added that Daya was in talks with several parties for new contracts. “It’s not like new vessels are coming in every year, but we are scouting around Indonesia, Vietnam and Papua New Guinea,” he said. On the manufacturing side, Zaidi said Daya was investing in building testing facilities.
“At the moment, there is none in Asia that we can use to test the equipment we are building for this project,” he said.
Daya’s tender book currently stood at RM1.2bil, half of which it was confident of achieving, added Lim.
– The Star
