BT : Yongnam wins Marina expressway contract worth $21.5 million

Business Times - 01 Dec 2009


Yongnam wins Marina expressway contract worth $21.5 million

Latest deal raises firm's total contract value for MCE to $283 million

By JAMIE LEE

STEEL contractor Yongnam Holdings has been awarded a $21.5 million contract to build part of Singapore's new expressway.

The latest award raises its total contract win value for the Marina Coastal Expressway (MCE) project to $283 million, the company said yesterday.

Yongnam said that it would support the main contractor, Samsung C&T Corporation, by installing and removing temporary steel strutting and waling works for the wide and deep tunnel excavation.

This is expected to be completed by September 2012. The contract is not expected to have an impact on the group's financial performance this year.

The new expressway is expected to be done by 2013 and will connect the Kallang-Paya Lebar Expressway (KPE) and the East Coast Parkway (ECP) to the Ayer Rajah Expressway (AYE).

Separately, Yongnam said in April this year that it had won three new contracts worth about $40.4 million for construction works for the Dubai Metro. These include the supply and erection of the structural steelworks for sections of the train stations.

A company spokesman told BT: 'The three projects will be substantially completed by end 2009 and are expected to contribute positively to the group's revenue and profit, as well as consolidated net tangible assets and earnings per share for the current financial year.

'In addition, the contracts are with Japan-Turkey Metro Joint Venture (the JV partners are Obayashi, Kajima and a Turkish company) and these are infrastructure projects, that is, Dubai MRT, and the ultimate client is Roads & Transport Authority of UAE.'

Yongnam said in the April press release that the Middle East was its next key market after Singapore. Last year, revenue contribution from the region more than doubled to $143.3 million from $65.1 million a year ago.

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