KKB Engineering Bhd which secured a RM171mil contract from Pertama Ferroalloys Sdn Bhd on Tuesday, is setting its eyes next on a lucrative contract to be dished out by OM Materials (Sarawak) Sdn Bhd for the construction of a manganese and ferrosilicon alloy smelting plant in Samalaju Industrial Park, Bintulu.

KKB, which has won three major contracts in the Sarawak Corridor of Renewable Energy (Score), has been pre-qualified by OM Sarawak for the plant’s construction job.

News reports suggest that KKB Engineering will submit their bid once OM Sarawak finalises the design of its project.

OM Sarawak, a 80:20 joint venture between Australia-based OM Holdings Ltd (OMH) and Cahya Mata Sarawak Bhd (CMSB), expects capital expenditure (capex) of US$592mil (RM1.86bil) for the smelting project.

OMH said the site would be ready for commencement of plant construction next month and it would take 30 months to complete the factory. Ferrosilicon production under phase one is expected to start in the first quarter of 2014. Phase two is expected to be commissioned in the first quarter of 2015 to produce silicon manganese and high carbon ferromanganese.

OM Sarawak and Pertama Ferroalloys, formerly AML Manganese (M) Sdn Bhd, are among the first batch of four pioneer investors in energy-intensive industries in Samalaju. The other two investors are Press Metal Bhd and Japan’s Tokuyama Corp, which are building an aluminium smelter and polycrystalline silicon plant respectively.

Pertama is investing some RM790mil in the manganese ferroalloy smelting plant which will be implemented in two phases.

[News source]