DRB-Hicom clinches RM120m Tenaga contract for supply of vehicles

DRB-Hicom Bhd’s subsidiaries have clinched a RM120 million contract from Tenaga Nasional Bhd (TNB) to supply vehicles to the utility giant which is replacing its fleet of 1,720 ageing vehicles.

Tenaga president and CEO Datuk Seri Che Khalib Mohamad Noh said yesterday it was investing more than RM120 million to replace the vehicles in three phases.

The vehicles will be supplied by DRB-Hicom Bhd’s subsidiaries, Automotive Corporation (M) Sdn Bhd and EON Auto Mart Sdn Bhd.

He was quoted by Bernama as saying that Tenaga had already replaced 521 vehicles costing about RM50 million.

Che Khalid said the reliability and efficiency of the fleet were crucial to avert any delay in operations due to breakdowns.

“The purchases are necessary to replace vehicles that consistently break down and to also enhance Tenaga’s productivity. Most of the vehicles are between 10 and 15 years old and incur a high maintenance cost. So, we feel the time has come to replace all of them,” he told reporters.

Che Khalid said Tenaga’s 24-hour and high-pressure operations had placed heavy demand on its vehicles and drivers.

“We believe these new models will give unprecedented levels of reliability and a reduced operational costs while helping us to deliver significant operational savings,” he added.

Tenaga, he said, was also allocating RM25 million for tools.



This article appeared in The Edge Financial Daily, July 13, 2010