Saunders Secures $23 Million Defence Fuel Infrastructure Contract in Malaysia

Major Defence Contract in Malaysia

Saunders International Limited (ASX:SND) has secured a significant $23 million head contract with the Australian Department of Defence to upgrade and enhance fuel infrastructure at the RMAF Base Butterworth, located in Penang, Malaysia. This project is a strategic extension of Australia’s defence infrastructure footprint in the Indo-Pacific region.

The contract involves off-site fabrication, construction, installation, and commissioning of fuel storage and transfer systems, alongside associated civil, mechanical, electrical, control, and fire safety infrastructure. The upgrade aims to improve the resilience, safety, and operational capability of the existing Defence Fuel Facility on the Australian Leased Facilities at the base.

Integrated Capabilities on Display

Saunders will leverage its multidisciplinary expertise across fluid storage and transfer infrastructure, structural and mechanical piping, civil works, and industrial automation to deliver this high-compliance project. The scope also includes rigorous testing and commissioning to ensure operational readiness before handover.

This contract aligns with Saunders’ broader strategy to deepen its Defence & Government sector presence, a priority market where the company aims to capitalise on long-term investments in critical infrastructure and fuel resilience. Managing Director Angelo De Angelis emphasised the importance of trusted relationships and the company’s ability to operate in complex environments.

Financial Impact and Timeline

Pre-mobilisation activities are already underway, with site mobilisation planned for the second quarter of FY2027. The contract is expected to contribute positively to Saunders’ revenue and earnings through FY2027 and FY2028, adding to the company’s growing Defence project portfolio.

This award follows a series of Defence infrastructure wins for Saunders, including a $20 million subcontract at RAAF Base Learmonth, underscoring the company’s expanding footprint in this sector. It also complements recent contracts in energy and water infrastructure, reinforcing Saunders’ diversified project pipeline across multiple critical infrastructure markets.