BHIC unit accepts Mindef's 9-month contract extension for RM79.32mil

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KUALA LUMPUR: Boustead Heavy Industries Corporation Bhd's (BHIC) indirect subsidiary, Boustead DCNS Naval Corporation Sdn Bhd (BDNC), has accepted another nine-month extension for a Ministry of Defence Malaysia (MINDEF) contract worth RM79.32 million.

In a filing with Bursa Malaysia today, BHIC said the extension is from Jan 1, 2022 to Sept 30, 2022.

BDNC had previously accepted a contract to provide in-service support for Prime Minister’s class submarines for the Royal Malaysian Navy.

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"Apart from the extension of the contract period and a revision of the contract value, there are no significant differences between the substance of the contract and this extension. The additional contract extension will contribute positively to the earnings of BHIC group for the financial year ending Dec 31, 2022," the filing said.

BDNC is a joint venture company between BHIC Defence Technologies Sdn Bhd (60 per cent), a wholly owned subsidiary of BHIC, and Naval Group (40 per cent), the filing said. - Bernama


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