Metax Engineering clinches deals worth $33 million

THE struggling engineering firm taken over by Koh Brothers Group a year ago has shown signs of a turnaround by winning four new contracts worth $33 million all in.

Metax Engineering announced on March 12 its subsidiaries had secured the contracts for palm oil bio-refining and bio-energy engineering projects in Malaysia and Thailand.

The deals include one facility in Thailand, two in Sarawak and another in West Malaysia.

The jobs will be undertaken by Metax subsidiary Oiltek and are expected to be completed by June next year.

Metax chief executive Fong Kim Seng said that the projects indicate the growth in palm oil refining industries.

"[They] also serve as a recognition of our bio-refining and bio-energy engineering expertise and track record," Mr Fong added.

The new contracts are the second round of deals the firm has won since Koh Brothers took a 41 per cent stake in March last year.

Metax clinched a $6.7 million tender from the Public Utilities Board last October to expand two facilities at the Jurong Water Reclamation Plant.

Its order book now stands at at $60 milion.

Koh Brothers managing director and CEO Francis Koh told The Straits Times that the partnership between the two firms has helped Metax bid for such large projects.

"Metax is [now] financially stronger... and we have a bigger network that [it] can tap on for more business opportunities.

"When we took over Metax, we did some restructuring. Management-wise, it's now more streamlined and efficient," said Mr Koh, who is also non-executive chairman of Metax.