Irish-based engineering and construction group, Kentz International, yesterday signed a $12 million (€10.3 million) contract with the developers of a major petrochemical complex in Guangdong province in southern China.
The Clonmel, Co Tipperary-headquartered group's subsidiary, Kentz Overseas, will install the site-wide telecommunications network at the complex. A statement yesterday valued the deal at $12 million.
CSPC, a joint venture between global oil giant Shell and the Chinese National Oil Company, awarded the contract.
Dr Hugh O'Donnell, the chief executive of Kentz, described the contract as a success for the group.
"This project, won in the face of intense international competition, is further clear evidence of the world-class expertise of our professional staff," he said.
Kentz Overseas will be working with local operator, Jilin Chemical and Engineering Construction, on the Guangdong complex.
The Irish company said yesterday that 22 staff at its offices in Clonmel were already working on the initial procurement and engineering for the project. The work is due to be completed in the second quarter of 2005.
Kentz's Asian business development manager, Mr Keith Barry, announced the contract at an Enterprise Ireland function attended by the President, Mrs McAleese, who is currently leading a trade mission to China. Mr Zhongling Du of Jilin Chemical and Engineering Construction was also present.
Kentz International had revenues last year of $160 million. The company would not reveal its profits for the year. However, its pre-tax margins are said to be in line with its industry's standard of between 4 per cent and 5 per cent, giving it potential pre-tax earnings of over $7 million.
The company operates in Europe, Africa, the Middle East, the Far East and the Americas. It employs 3,500 people worldwide. Kentz International was formerly known as MF Kent, which went into examinership 10 years ago.
The company had borrowed against future contract revenues, which failed to materialise, and had not received money for work done on a hotel that was part of the Barcelona Olympic village.
The company was rescued by Malaysian group Peremba, which purchased a 60 per stake in the business in 1994. It subsequently increased this to 90 per cent. Peremba has since exited, and transferred its shares to two Malaysian investors. Mr Noel Kelly, a former executive, holds 10 per cent of the business. It recently provided the electrical services for Blackrock Clinic's private hospital in Galway.
