KUALA LUMPUR: Salcon Bhd's subsidiary, Salcon Engineering Bhd (SEB), has secured a RM167 million contract from Pengurusan Aset Air Bhd (PAAB) for the development of a new water treatment plant, raw water pipeline and associated infrastructure in Melaka.

The project is for the construction, completion and commissioning of a 1,200 millimeters diameter raw water main pipeline and a water treatment plant with a capacity of 90 million liters per day, the group said in a bourse filing.

The contract is expected to be completed by Oct 20, 2027.

"The project is expected to contribute positively towards the earnings and net assets of Salcon for the financial years ending Dec 31, 2025 and onwards," it added.

SEB chief executive officer Jamiluddin Amini Sulaiman said this initiative will improve the supply and distribution of treated water in the Alor Gajah district and nearby areas, reinforcing PAAB's commitment to providing clean water access for the residents of Melaka.

Salcon's share price closed flat at 30 sen with 831,200 shares exchanged, valuing the company at RM310.63 million.