Malaysian steelmaker Prestar Resources’ subsidiary Prestar Engineering has secured a MYR80mn ($18.66) contract to supply safety rail and accessories for the proposed Pan Borneo Highway project in Sarawak.
Prestar Engineering entered two supply agreements for the highway project with Pansar Company and Kemakmuran, and LTC West Gate. The company will supply road furniture including guard railing to Pan Borneo highway, which is part of a road network in Borneo Island that connects Sabah and Sarawak with Brunei and Kalimantan, Indonesia.
Prestar Resources is a holding company with subsidiaries and associates engaged in steel processing and steel manufacturing activities in Malaysia. PRB manufactures carbon and stainless steel pipes/hollow sections, steel highway guardrails, flat-bars and steel shelves and racks for storage.
In Q1FY2020, Prestar Resources faced weak market demand and depressed steel prices as the Malaysian government imposed operational restrictions under Movement Control Order (MCO) on March 18 which hurt industrial production in the country. Prestar’s production and distribution businesses were suspended during the MCO. Some subsidiaries resumed operation by the April-end.
Prestar expects unprecedentedly impact of the pandemic on the financial performance of the Group in FY2020. The government has announced several stimulus packages to spur economic activities. For Q1, Prestar group reported revenue and profit before taxation (PBT) of MYR93.7mn and MYR4.4mn, respectively, which is down 17pc from the prior year quarter, mainly due to the pandemic related MCO.