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KUALA LUMPUR: Kelington Group Bhd's subsidiary Kelington Technologies Sdn Bhd has entered into a development contract with a Franco-Italian multinational to undertake the design, engineering and construction works on a new manufacturing building.

In a bourse filing, the group said the development consists of a manufacturing (plating) area, mechanical and electrical utilities plant, and a multi-storey carpark to the existing plant in Johor.

It added that the contract, valued at about RM114mil, is subject to the actual amount of work carried out, depending on variation orders, scope options, and value engineering.

The work is scheduled to commence in June 2022 and is expected to be completed by December 2023.

The contract is expected to contribute positively to the earnings and net assets of Kelington for the financial years ending Dec 31, 2022, and Dec 31, 2023.