BHIC gets go-ahead for in-service support contract for submarines

PETALING JAYA: Boustead Heavy Industries Corp Bhd’s Boustead DCNS Naval Corporation Sdn Bhd (BDNC) has obtained consent letter from the government dated Nov 9, 2018 to undertake the in-service support (ISS) for two units of Prime Minister’s Class Submarines for the Royal Malaysian Navy.

BDNC is a between BHIC Defence Technologies Sdn Bhd (60%), a wholly-owned subsidiary of BHIC, and Naval Group (formerly known as DCNS S.A) (40%).

BDNC has submitted an invoice of RM90 million (excluding any goods and services tax) to the government for the provision of out of scope works for the ISS contract from June 1, 2017 to March 31, 2018.

The ISS and out of scope of works contracts are expected to contribute positively to earnings of the group for the ending Dec 31, 2018.

Source: The Sun Daily

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