Boustead: RM400m MRO ventures in Penang, Terengganu (2771)

GEORGE TOWN: Penang's role as a centre for shipbuilding and ship repair services will get a leg up by year-end when Boustead Heavy Industries Corporation Bhd (BHIC) sets up a maintenance, repair and overhaul (MRO) site on the island.

An investment of RM100 million is being committed to establish the MRO operations to service fishing and feeder vessels, BHIC commercial division head Datuk Jasan Ahpandi Sulaiman said.

The move, he added, is expected to spin off more business opportunities for the company's local vendor pool in Penang, which currently stands at between 200 and 250 companies.

"We are also planning to invest a further RM300 million to set up similar operations in Terengganu early next year, if we can find a suitable joint-venture partner," Jasan told a media briefing here.

He said the two new ventures are part of investments totalling between RM700 million and RM800 million, which BHIC will plough into MRO activities between now and 2020.

BHIC is a shipbuilding, ship repair, maritime, engineering and defence-related services provider.

"We are currently carrying out some studies, so that recommendations can be made on personnel and investments at the potential sites," he said.

He said that Langkawi serves as a MRO centre for luxury yachts, while helicopters and naval ships are serviced at its Lumut shipyard, Perak.

Jasan said with the MRO services about to be offered by BHIC in Penang soon, more opportunities will open up for local companies to take part as vendors in repair work for engines, piping and other jobs like those in logistics and communications.

"Since 1990, we have awarded contracts to Penang vendors totalling RM31 million and their workforce has since increased fourfold," he added.

"We encourage more local firms to serve us," Jasan said, adding that there would be opportunities for an additional 15 to 20 new firms to come on board as suppliers to BHIC in Penang soon.

BHIC's shipyard in Penang covers 10.4ha of land at Pulau Jerejak and the operations are supported by more than 200 local vendors, which include engineering firm Mak and Leo Engineering Sdn Bhd.

Mak and Leo Engineering managing director Leo Chee Kow, who was also present at the briefing, said its association with BHIC from more than two decades ago had opened doors for it to serve other firms engaged in oil and gas activities, like Kencana Petroleum Bhd and Lembaga Tabung Haji. Marina Emmanuel