Midas inks RMB83.5mn deal with Malaysia and Turkey rail projects

Deals to supply 228 train cars for the Malaysia Intercity Urban Rail Project and 32 train cars for the Izmir Light Rail Transit Project in Turkey.

Midas Holdings Limited (“Midas”) announced on Wednesday that its Aluminium Alloy Division, Jilin Midas Aluminium Industries Co., Ltd (“Jilin Midas”) has clinched two new international contracts worth an aggregate sum of RMB83.5 million to supply aluminium alloy extrusion profiles, including certain fabricated parts, for the Malaysia Intercity Urban Rail Project and the Izmir Light Rail Transit (“LRT”) Project in Turkey respectively, according to a Midas report.

Both contracts were awarded by CSR Zhuzhou Electric Locomotive Co., Ltd (“CSR Zhuzhou”) to Midas, marking the Company’s foray into the Malaysian market with a contract valued at RMB71.0 million. The Malaysia Intercity Urban Rail Project will see Midas supplying aluminium alloy extrusion profiles, including certain fabricated parts, for 38 train sets (1 train set = 6 train cars), or an equivalent of 228 train cars. Delivery is expected to take place between 2011 and 2012.

The second contract awarded is for the Izmir LRT Project in Turkey. Under the terms of the contract, Midas will supply aluminium alloy extrusion profiles, including certain fabricated parts, for 8 train sets (1 train set = 4 train cars), or 32 train cars, for a value of RMB12.5 million. This contract will be fulfilled this year, 2011.

Said Mr. Patrick Chew, CEO of Midas, on the Company’s new contract wins, “We are delighted to have secured our maiden contracts in Malaysia and Turkey, with the support of our customer CSR Zhuzhou. This is yet another affirmation of our strong working relationship and quality products and services, in particular for our downstream fabrication business.

“We will continue to build on our strong track record to explore opportunities to further grow Midas’ export orders, which will complement our market leading position in the PRC market.”