Vivocom International Holdings Berhad (“Vivocom” or “Group”) has today announced that V Development Group has secured a sand contract worth approximately USD934.7 million (equivalent to RM3.79 billion).
V Development Group, which will soon merge with Vivocom, has via its 97%-owned subsidiary Rain International Sdn Bhd (“Rain International”) signed a contract for the supply of marine sand for a minimum period of three (3) years (“Contract”).
The sand will be supplied to Zhen Hua Engineering Company Ltd-China Communications Construction Company Ltd-CCC Dredging (Group) Company Ltd. (“ZHEC-CCCC-CDC”), a Joint-Venture contractor appointed to undertake the main reclamation works for the Hong Kong International Airport Three Runway System Project.
Rain International is principally involved in the mineral trading and exportation business, supplying sand to its clients mainly in Hong Kong and China for reclamation and construction works.
Director of Rain International Mr William Chan Ching-Kee said: “As the appointed agent for the ZHECC-CCCC-CDC Joint Venture, we are looking forward to the exportation of sand from Malaysia to our client in Hong Kong to commence without any further delay.”
Vivocom Chief Executive Officer Dato’ Seri Chia Kok Teong said: “This Contract will be a game changer for the Group and will contribute substantially to our earnings growth exponentially. While the Contract starts with a 3-year period, we are confident that the Contract can easily be increased to 5 years and beyond, with higher tonnage shipped every 6 months. This could potentially generate revenue of up to RM6 billion to the Company.”
Besides the reclamation works for the Hong Kong International Airport, the rapid pace of construction and reclamation works in China and Singapore also require heavy demand for sand, which is a considerable boon to Malaysia.
Dato’ Seri Chia said this contract win is part of the Company’s transformation strategy to become a multi-billion conglomerate, and to diversify the Group’s revenue generation capabilities.
The sand would be procured from an approved permit holder to export sand overseas, and sourced from concession areas in Sandakan and Sungai Beluran in Sabah and throughout Malaysia.
“As a priority, we will work towards getting the Group elevated to the Main Board of Bursa Malaysia and be a dividend-paying company soonest possible,” Dato’ Seri Chia added.
This content is provided by Aegis Communication Sdn Bhd.
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