Langkawi: Precision manufacturing outfit UPECA Technologies Bhd inked a RM270 million contract for the manufacturing of aerostructure components with Spirit Aerosystems (Europe) Ltd.

Spirit Aerosystems is a manufacturer specialising in the aviation sector, and its clients includes Airbus of France and US-based Boeing. It has a manufacturing facility in Subang.

UPECA's contract from Spirit Aerosystems is for a duration of 10 years, and will require UPECA to invest up to RM30 million to upgrade its facility in Puchong.

"This is, to date, the largest job we have inked, and it will place us in a good position to secure more such contracts," UPECA's chief executive officer Simon S K Yew said during a press conference after the signing ceremony yesterday.

According to Yew, UPECA's order book will increase to about RM700 million with the addition of this contract.

Generally, about 60% of the company's order book comes from the oil and gas sector where it manufacturers precision components such as sub-sea equipment. The remaining work is from aerospace and turnkey contract manufacturing.

However, with this job from Spirit Aerosystems, Yew said that he was looking at the company's aerospace arm UPECA Aerotech Sdn Bhd contributing some 40% to 50% of the order book in the coming years.

"This contract should be a catalyst for us. Over the past month (including the new contract from Spirt Aerosystems), we have beefed up our order book by about RM400 million with jobs from China as well," Yew added.

At present, UPECA has manufacturing facilities and offices in Thailand and China, apart from Malaysia. The company ventured into China about six years ago.

On a possible flotation of the company's shares on Bursa Malaysia, Yew said that UPECA had been given the requisite approvals by the Securities Commission but had deferred the plans due to the unfavourable market conditions.

"We are looking for the appropriate time to list, but it's not a priority now. Besides most of our jobs, about 90%, are from abroad," Yew added.

UPECA is 30% controlled by the Terengganu state government while the remaining shareholders are Yew and his partners.