SPECIALIST engineering firm Acromec has secured a S$19.5 million sub-contract to supply, deliver and install air-conditioning and mechanical ventilation systems at a new medical building in the Singapore General Hospital campus.

The new 12-storey health and medical care building will be used for acute care and will include an accident and emergency facility, acute medical wards, and isolation rooms.

The scope of work under the sub-contract also includes the supply, delivery and installation of the building's supporting infrastructure, an engineered smoke control system and the integrated building management system, the Catalist-listed company said in a bourse filing on Monday evening.

Acromec said it has received and accepted a binding letter of intent for the award of the sub-contract.

The project will commence in the second half of its financial year ending Sept 30, 2020, and is expected to complete by December 2022.

Acromec expects the sub-contract to contribute positively to the group's earnings per share and net tangible assets per share for fiscal 2020.

Lim Say Chin, executive chairman and managing director of Acromec, said: "This is a sizeable and longer duration project as compared to our other projects which typically run for less than a year. It will therefore provide more stability and visibility to our revenue, order book and resource planning."

The contract win comes a week after Acromec had disclosed it was in advanced discussions with a third party to conclude a potential material contract which involves the construction of a medical facility in Singapore.

Shares of Acromec closed S$0.006 or 7.5 per cent lower at S$0.074 on Monday, before the announcement.