UMW Invests in Oil and Gas Fabrication Yard in Lumut, Perak
Lumut, Perak 28 June 2008 – The UMW Group, through its Oil & Gas Division, will participate in a 70% joint venture with DKLS Oil & Gas Sdn Bhd (formerly known as DKLS Homefields Sdn Bhd), a wholly-owned subsidiary of DKLS Industries Berhad, for the setting up of an oil and gas fabrication yard in Lumut, Perak.
The waterfront yard, located at the Lumut port, is expected to be completed before the end of the year at a total initial cost of approximately RM100 million. The development of the yard will be carried out in phases, and should be fully set up in 3 to 4 years’ time. The project will involve the construction and fabrication of key oil and gas industry structures in support of UMW Oil & Gas’ operational expansion into the global market.
The total land area for the facility, including the load-out wharf, is approximately 42 acres. When fully operational, the yard is expected to provide employment for up to 800 people.
“Our new construction and fabrication facility in Lumut will further strengthen UMW’s global position and growing reputation as a leading provider of the oil and gas industry’s ancillary products and services,” said Tan Sri Asmat Kamaludin, Group Chairman, UMW Holdings Berhad at the groundbreaking ceremony for the fabrication yard today. “As our business involves fabrication of large structures, these structures cannot be transported by road or rail upon completion. They will be loaded onto barges and transported by sea. The close proximity of Lumut to the Straits of Melaka is a great advantage for us.”
The UMW Oil & Gas’ fabrication yard’s groundbreaking ceremony was officiated by the Menteri Besar of Perak, YAB Dato’ Seri Ir. Hj Mohammad Nizar Jamaluddin.
UMW’s oil and gas business has been progressing extremely well, backed by the higher oil prices and an aggressive expansion strategy in the face of increased exploration and drilling activities globally.
UMW Oil & Gas’ support services for the industry complements the robust upstream activities through five main business activities: the manufacture of Oil Country Tubular Goods (OCTG) and line pipes, exploration operations, fabrication, provision of oilfields services, and supply of oilfield products.
“Since its inception in 2002, our Oil and Gas Division has forged ahead with a number of exciting new ventures, and has become an important contributor to the UMW Group’s earnings, with operations in 11 countries in the Asia-Pacific region.”
UMW’s venture into fabrication operations started in 2006 when it acquired VINA Offshore Holdings Pte Ltd, which has operations in Singapore and Vietnam. VINA’s fabrication and engineering complex in Vung Tau, Vietnam, is strategically located at the water edge, with 1,000 ton skid way for loading-out purposes.
This was followed by the acquisition of Helmsion Engineering Pte Ltd of Singapore in 2007. Helmsion specialises in the design, procurement, fabrication, modification, installation and marketing of a wide range of cranes, hoist and other lifting equipment for the industrial automation and control markets in the Asia-Pacific region.
To further strengthen its fabrication business, UMW acquired Offshore Construction Services Pte Ltd of Singapore (OCS), earlier this year. OCS has established a strong presence in the fabrication business and has extensive experience in a wide variety of fabrication works.
In Malaysia, aside from the soon-to-be-completed fabrication yard in Lumut, UMW Oil & Gas has established a fabrication and coating plant in Kemaman, Terengganu.
The UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth. It is involved in four core businesses - Automotive, Equipment, Manufacturing and Engineering, and Oil and Gas.
UMW recently unveiled its new brand which is aimed at amplifying its leading position at home and organising itself for greater global expansion. It will now focus on building on the strengths of its core businesses as well as enhancing those strengths in the global arena to further tap international opportunities.
Malaysian Rating Corporation Bhd has assigned a Corporate Credit Rating (CCR) of ‘AAA’ to UMW, the highest of its ratings levels.
In adopting its new rallying call - Beyond Boundaries – UMW is set to play a leading role in shaping the future of its industries globally. The company will do this by inspiring vibrant ideas, nurturing potential, pioneering partnerships and delivering excellence in everything it does; the rewards of which will contribute to the progress and well-being of all its stakeholders.
