Acromec wins 3 contracts worth $6.2m from healthcare, pharmaceutical companies

SINGAPORE - Engineering firm Acromec has secured three new contracts worth about $6.2 million from healthcare and pharmaceutical companies.

With these contracts, the group's order book now stands at $18 million.

The first deal is for the additions and alterations to a new endoscopy suite at a medical centre for a repeat customer in the healthcare industry. This project will be carried out in two phases, and is expected to be completed by the end of the current financial year ending Sept 30, 2018, or FY2018, Acromec said in a statement on Tuesday (July 3) before the stock market opened.

The second agreement was awarded by a multinational corporation in the human and environmental health sector. For this contract, Acromec will undertake the process engineering works and also provide furniture for its testing, showcase and research laboratory facilities. This is a three-monh project slated to be completed by the end of FY2018.

In addition, Acromec has also been nominated as the sub-contractor for the fitting out of a cleanroom that complies with 'Good Manufacturing Practices' standards for a biomedical company. This third contract is expected to be completed by the first quarter of the financial year ending Sept 30, 2019, and shows that the group's efforts to enter the pharmaceutical industry has gained traction, Acromec said.

The group added that these contracts are expected to contribute positively to its earnings per share, and net tangible assets per share for FY2018. It did not name the three customers.

Looking ahead, the engineering firm noted that the growing healthcare industry will continue to be its area of focus. Said Acromec: "Barring unforeseen circumstances, it will provide us opportunities, as this industry is supported by infrastructure spending by both the public and private sectors so as to cater to the needs of our ageing population in Singapore."

Acromec shares closed unchanged at 19 cents on Monday.