Hextar Industries Bhd has moved to bolster its engineering and construction capabilities through a substantial contract award to its subsidiary. The Bursa Malaysia-listed group announced that Hextar Mitai Sdn Bhd, in which HIB holds a 70 per cent stake, has secured a RM138.42 million engineering, procurement and construction contract for a major industrial complex in Pulau Indah, Selangor. The agreement was finalised with a private investment firm specialising in non-residential property development, marking another significant addition to the group's growing project portfolio.
The scope of work encompasses the complete delivery of structural, architectural, landscaping, infrastructure, mechanical and electrical services across five distinct industrial buildings. These facilities are designed to serve multiple purposes within a unified industrial ecosystem, comprising three production factories and warehouse facilities alongside two workers' hostel buildings and supporting amenities. The comprehensive nature of the assignment demonstrates the contractor's responsibility across the entire value chain, from initial structural work through to final mechanical and electrical commissioning.
The project footprint covers approximately 80,928.52 square metres of land, equivalent to 8.09 hectares, with a total built-up gross floor area of roughly 101,801 square metres or 10.18 hectares. This scale reflects the significant investment in industrial infrastructure being undertaken in the Klang Valley region, one of Malaysia's primary manufacturing and logistics hubs. The size of the development indicates growing confidence in Selangor's industrial sector and the continued importance of Pulau Indah as a destination for manufacturing and warehousing operations.
Construction activities are scheduled to commence on 7 July 2026, with the developer targeting completion within a 12-month window from project kickoff. This timeline places the anticipated handover in mid-2027, subject to standard contractual conditions. However, Hextar Industries noted that final completion certification will depend on formal confirmation from the contract awarder through the issuance of an official completion certificate, a standard industry practice that protects both parties and ensures all specifications have been met to required standards.
Group managing director Benny Ang characterised the award as a watershed moment for the company's civil engineering operations. According to Ang, the contract demonstrates the group's technical competence in delivering complex industrial infrastructure projects and reinforces its standing among clients seeking reliable EPC partners. The executive highlighted how the project strengthens the group's order book and provides enhanced visibility into future earnings streams, a critical factor for investor confidence in the construction services sector where project completion and handover directly impact financial performance.
The contract is expected to meaningfully contribute to group earnings once construction commences in mid-2026. Executive director Alex Sham noted that the project arrives at a propitious moment, as demand for industrial infrastructure development across the Klang Valley continues to accelerate. This regional expansion in manufacturing and logistics facilities reflects broader trends within Malaysia's industrial sector, where companies seek modern facilities equipped with contemporary infrastructure to maintain competitiveness in regional and global supply chains.
Hextar Industries' diversified business model provides strategic advantages in pursuing such opportunities. The Main Market-listed company operates across multiple sectors including fertiliser production and distribution, engineering services, industrial products manufacturing, office supplies, and food and beverage operations. This diversification spreads risk across different market cycles while allowing the group to leverage existing relationships and operational capabilities to pursue infrastructure development contracts that align with its core competencies.
The Pulau Indah industrial complex represents a significant validation of Hextar Industries' EPC capabilities and positions the group competitively for similar opportunities in the region. As Malaysian manufacturing continues to evolve toward higher-value production and integrated logistics, demand for purpose-built industrial facilities with comprehensive infrastructure support will remain robust. The group's ability to secure such contracts underscores its credibility with major private developers seeking experienced partners capable of delivering complex multi-building projects on schedule.
For investors, the contract award signals that Hextar Industries' construction division has matured into a meaningful revenue contributor with visible project pipeline expansion. The completion of this 80,000-square-metre development will enhance the group's track record and potentially open doors to even larger industrial development opportunities across the Klang Valley and wider Selangor region. Given Malaysia's ongoing industrial transition and the Klang Valley's role as a manufacturing and logistics centre, such EPC contracts will likely remain a growth avenue for well-positioned contractors in the coming years.
