Chasen Holdings lands two contracts worth $6.8m with repeat customer

SINGAPORE - Logistics specialist Chasen Holdings has secured two new contracts worth a combined 34 million yuan (S$6.8 million) through its wholly-owned subsidiary Chasen (Shanghai) Hi-Tech Machinery Services, the mainboard-listed company said in a Singapore Exchange (SGX) filing on Monday (Nov 26).

The contracts with a repeat customer involve providing specialist relocation services in China for a state-of-the-art flat-panel display production plant and a semiconductor fabrication facility.

For the first contract, which is worth 9 million yuan and will run from Jan 2019 to May 2020, Chasen will move equipment and machinery for the pilot line of the customer's maiden wafer fabrication facility in Kunming, the capital city of Yunnan province.

The second contract is worth 25 million yuan and requires Chasen's move-in services for the first phase of a two-phase project for a thinned-film transistor (TFT) LCD production plant in Wuhan, capital of Hubei province. Chasen will start work in April 2019 and aims to complete this phase of the project by Dec 2019.

Both projects are expected to have a positive impact on Chasen's results for the next financial year starting April 1, 2019, said the company.

"Growing demand for electronic and smart devices in China has been a major driving force behind the country's flat-panel display market. This is also fuelling the emergence of more wafer fabrication plants to meet the need for more microchips," said Low Weng Fatt, Chasen's managing director and chief executive officer.

He noted that this is the first time one of its TFT LCD customers is building its own wafer fabrication facility instead of purchasing wafer chips from a third party supplier, and Chasen is optimistic about continuing with the customer in the remaining phases of both projects.

"As a company that specialises in moving sophisticated manufacturing equipment and fitting out production plants, we see a lot more room for us to grow as these industry-wide developments continue to unfold in China," Mr Low said.