KUALA LUMPUR, June 16 — Boustead Heavy Industries Corporation Bhd’s joint venture unit, Boustead DCNS Naval Corporation Sdn Bhd has secured a RM154.3 million contract from the Defence Ministry to provide in-service support for the Royal Malaysian Navy’s Scorpene submarines.

The one-year contract started on Jan 1, 2020, the group said, adding that a formal contract between its unit and the ministry will be signed at a later date.

"The contract will contribute positively to the group’s current year earnings,” it said in a filing with Bursa Malaysia.

Boustead DCNS Naval Corporation is a joint venture between the group’s wholly-owned subsidiary, BHIC Defence Technologies Sdn Bhd which owns a 60 per cent stake, while French defense contractor, Naval Group holds 40 per cent. — Bernama