Hextar Industries Bhd's 70 per cent-owned subsidiary Hextar Mitai Sdn Bhd has landed a RM138.42 million engineering, procurement and construction agreement for a substantial industrial complex in Pulau Indah, Selangor, marking a significant addition to the group's project portfolio. The contract, inked with a private real estate investment company, encompasses comprehensive construction services including structural work, architectural finishes, landscape design, infrastructure development, and full mechanical and electrical installations across five separate buildings on the sprawling site.
The industrial complex will comprise a mix of production and logistics facilities alongside residential accommodation for the workforce. Three production factories and associated warehouse structures form the manufacturing core of the development, while two dedicated worker hostel buildings will provide on-site housing for employees. Additional ancillary facilities round out the comprehensive industrial campus, designed to support integrated manufacturing and operational activities. The entire development footprint spans 80,928.52 square metres across 8.09 hectares of land, with the gross construction area reaching approximately 101,801 square metres or 10.18 hectares when accounting for all enclosed structures and building envelopes.
According to the project timeline disclosed to Bursa Malaysia, construction mobilisation will commence on July 7, 2026, with the company targeting completion within twelve months of work commencement. However, Hextar Industries emphasised that the formal project completion remains contingent upon official certification from the contract awarder, introducing a degree of flexibility around the anticipated finish date. This contractual safeguard ensures that quality standards and compliance requirements are verified before handover, a common practice in large-scale industrial construction where multiple disciplines and regulatory approvals intersect.
The Pulau Indah location holds strategic importance for industrial development within the Klang Valley region. The area, situated within Selangor's established industrial corridor, has become increasingly attractive for manufacturing and logistics operations due to its proximity to Port Klang, transportation networks, and existing industrial infrastructure. The choice of this location for a multi-facility complex suggests strong investor confidence in the region's economic fundamentals and long-term growth prospects for manufacturing and supply chain operations.
Hextar Industries' group managing director Benny Ang characterised the contract win as a pivotal achievement for the company's civil engineering operations. The executive highlighted that the project demonstrates the subsidiary's accumulated technical expertise while substantially reinforcing the group's order book with predictable future revenue streams. By securing major contracts of this magnitude, Hextar strengthens its financial visibility and can better manage resource allocation across multiple operational divisions. The industrial infrastructure specialisation also distinguishes the group within a competitive marketplace, building reputation and credibility for handling complex, multi-disciplinary construction assignments.
Executive director Alex Sham underscored the financial implications of the new contract, projecting positive earnings contributions once active construction begins in mid-2026. The executive's comments suggest confidence in project execution and margin realisation, critical factors for publicly listed companies needing to demonstrate consistent earnings growth to capital markets. The timing of commencement in 2026 allows Hextar to plan resource deployment and workforce scheduling across its existing project portfolio, optimising operational efficiency without overextending capacity.
The industrial infrastructure sector across the Klang Valley has experienced sustained demand growth, driven by Malaysia's position within regional supply chains and the necessity for manufacturers to upgrade or expand facilities. Sham's reference to increasing demand reflects broader regional economic dynamics, where companies seek modern, purpose-built industrial spaces meeting contemporary operational standards. This demand backdrop positions EPC contractors like Hextar Mitai favourably for pipeline development, creating opportunities to replicate this project model across similar clients and locations within the broader Selangor industrial ecosystem.
Hextar Industries' diversified business portfolio provides operational resilience and cross-selling opportunities across divisions. Beyond civil engineering and construction services, the Main Market-listed group operates businesses spanning fertiliser production, industrial products manufacturing, office supplies distribution, and food and beverage operations. This diversification means that industrial infrastructure success can complement and support growth trajectories across other business units, while infrastructure sector expertise may generate ancillary opportunities in equipment supply or facility management services.
For Malaysian investors and industry observers, the Hextar Mitai contract exemplifies how local construction and engineering firms can secure substantial project awards within a competitive domestic market. The transaction demonstrates that expertise, track record, and technical capability continue to drive project selection, despite globalised procurement practices. For the Selangor economy, the industrial complex itself will generate construction employment, contribute to state tax revenue, and establish modern manufacturing infrastructure supporting long-term industrial competitiveness. The project's success could enhance Hextar's reputation for pursuing additional similar opportunities, potentially attracting further investor interest in comparable Klang Valley developments requiring comprehensive EPC services.
