KUALA LUMPUR (Feb 4): AME Elite Consortium Bhd has secured a RM214.1 million construction contract from KLIA Aeropolis Sdn Bhd, a subsidiary of Malaysia Airports Holdings Bhd, to undertake the first phase of a specialised aircraft engine test cell facility in Sepang.
In a filing with Bursa Malaysia, AME Elite said the project involves the construction of the main buildings for a highly technical aeronautical facility designed to comply with strict safety, performance and engineering requirements associated with aircraft engine testing.
The project is scheduled for completion within 12 months and represents a significant addition to the group’s growing portfolio of high-specification industrial developments.
Group chief executive officer Dylan Tan Teck Eng described the contract award as a major milestone for the group, noting that it reinforces AME Elite’s technical expertise and delivery capabilities.
“Being selected for this landmark development reflects our proven ability to execute complex, safety-critical projects. It also supports Malaysia’s broader strategy to strengthen the aerospace and advanced manufacturing ecosystem,” he said.
Tan added that AME Elite’s construction and engineering operations are underpinned by an integrated delivery model, which has enabled the group to design and build customised facilities across sectors such as logistics, pharmaceuticals, manufacturing, aviation and its signature industrial parks.
“The project validates our ability to deliver precision-built facilities within tight timelines and under stringent regulatory standards. We are well positioned to meet increasing demand for high-performance industrial buildings across Malaysia’s growth sectors,” he said.
AME Elite expects the Sepang test cell project to contribute positively to group earnings for the financial year ending March 31, 2027.
With this latest contract, the group’s construction and engineering division has secured more than RM600 million in external project awards since the beginning of the current financial year, underscoring strong demand for specialised industrial infrastructure.
The project highlights continued investment momentum in advanced industrial infrastructure within the Klang Valley, complementing demand for industrial land in Selangor, particularly in strategic aviation and logistics zones. It also reflects broader market demand for purpose-built facilities alongside traditional factory developments in Puchong and established industrial property in the Subang area, which remain key hubs for manufacturing and engineering activities.
For developers and investors, the expansion of high-value industrial projects supports long-term growth across commercial property in KL and nearby office locations, including office space in Bukit Jalil, as aerospace, logistics and technology-driven industries continue to expand.
Shares in AME Elite closed two sen or 1.3% lower at RM1.48 on Tuesday, giving the group a market capitalisation of RM948.19 million. Over the past 12 months, the stock has declined 12.9%.
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