15 Apr 2019 (The Edge Markets MY) KUALA LUMPUR: Palm oil equipment manufacturer CB Industrial Product Holding Bhd (CBIP) said its unit has been awarded a contract worth RM71.17 million to build palm oil mills in Papua New Guinea's Markham Valley.

In an exchange filing today, CBIP said its wholly-owned PalmitEco Engineering Sdn Bhd has received the letter of acceptance (LoA) from New Britain Palm Oil Ltd (NBPOL) for the job. NBPOL is a subsidiary of Sime Darby Plantation Sdn Bhd.

Under the LoA, PalmitEco Engineering is to design, supply, install, commission, and complete the construction of a 10 tonne per hour (TPH) Continuous Sterilisation Mini Mill, and a 40/60 TPH Continuous Sterilisation Palm Oil Mill at Markham Valley.

CBIP said works for the 10 TPH mill is targeted to be completed by this November, while works for the 40/60 TPH mill is targeted for completion by February 2021.

The LoA is expected to contribute positively to the group's earnings and net assets per share for the financial year ending Dec 31, 2019 onwards, until completion of the works.

CBIP shares closed unchanged at RM1.08 today, for a market capitalisation of RM550.65 million.