DALIPAL HLDG (01921) has announced that on February 1, 2024, its indirect wholly-owned subsidiary, Dalipu Special Pipe (as the client), entered into an EPC contract with the contractor, MCC Jingcheng Engineering Technology Co., Ltd. (as the contractor). Under this contract, Dalipu Special Pipe has agreed to engage the contractor to provide EPC services for the project, with a total contract value of RMB 882 million.
The scope of EPC services under the contract includes design, equipment procurement, installation, commissioning, and material supply; construction, installation, and commissioning of production facilities and utilities; equipment testing; final acceptance; training; documentation delivery; and quality assurance.
The contractor's work must comply with national and industry regulations, standards, and procedures, as well as the quality requirements specified in the EPC contract. The contractor is responsible for ensuring that the project meets the standards outlined in the contract, including but not limited to production capacity, efficiency, quality, energy consumption, safety, environmental protection, and occupational health. The contractor is also accountable for the overall integrity of the project, covering aspects such as equipment, facilities, material supply, installation, commissioning, safety, timeline, quality, and maintenance.
According to the EPC contract, the construction period for the project is 450 days from the approval of the construction permit by the relevant government authorities. The purpose of entering into the EPC contract is to develop the project, which involves the construction and development of high-end pipe production facilities for oil drilling and energy equipment in the Bohai New Area of Cangzhou City.
The company believes that the project aligns with the group's business strategy. Upon completion, the group will have a new production line for high-end pipe products, which will help expand its production capacity. The EPC contract will enable the group to further scale its business through the construction of this new project, thereby enhancing returns for shareholders.