Acromec seals S$6.75m contract with private lab service provider

Singapore

ACROMEC has secured a S$6.75 million contract to outfit two clinical laboratories, raising its order book to about S$27 million, the company said in a Singapore Exchange filing on Friday.

The contract, from a private laboratory service provider in Singapore, is for works on laboratories that provide sophisticated diagnostic services.

The new contract is expected to contribute positively to the earnings per share and net tangible assets per share of the group for the current financial year ending Sept 30, 2019.

The new client, which belongs to one of Asia's largest healthcare groups, will commission what Lim Say Chin, executive chairman and managing director of Acromec, says is a "rush job", with work on the project to be completed by mid-June 2019.

"However, we are confident in our execution and delivery, given our know-how, strong support from our suppliers and contractors, and our established track record," Mr Lim added.

The two laboratories are fitted out with automation systems such as conveyor delivery and pneumatic delivery systems to enhance operational efficiencies. Acromec will ensure that the controlled environment parameters of the laboratory facilities, such as airflow, temperature and humidity, meet the requirements for sophisticated clinical test work.

This is Acromec's second contract win in less than a month. It clinched a S$7.6 million mechanical and electrical works contract for the construction of a poultry farm for Chew's Agriculture on March 19.

Acromec shares closed up 32.5 per cent or 2.6 cents at S$0.106 on Friday.