TH Heavy cautiously optimistic on outlook

TH Heavy cautiously optimistic on outlook
Business & Markets 2013
Written by Bernama
Monday, 03 June 2013 16:10


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KUALA LUMPUR (June 3): TH Heavy Engineering Bhd (THHE), formerly known as RAMUNIA HOLDINGS BHD [], is cautiously optimistic of its outlook as the company awaits the outcome of tenders worth more than RM2 billion.

Managing Director and Chief Executive Officer Nor Badli Mohd Alias said the company teamed up with McDermott International Inc to bid for RM1 billion worth of engineering, procurement, CONSTRUCTION [], installation and commissioning
(EPCIC) contract.

"We will likely know the results of the bidding process by October. THHE has also bid for another RM1 billion worth of projects," he told a press conference after the company's annual and extraordinary general meetings today.

At the extra ordinary meeting, the group's shareholders unanimously approved the establishment of a joint-venture between THHE and McDermott International Inc and two share swap exercises involving the subsidiaries of both companies.

McDermott will acquire 30 per cent of THHE's subsidiary, THHE Fabricators Sdn Bhd, while THHE will acquire 30 per cent in McDermott's local unit, Berlian McDermott Sdn Bhd.

Following the shareholders' approval, Nor Badli said THHE, which has an order book of RM301 million, was set to become a leading credible EPCIC player in the Malaysian and regional offshore oil and gas industry.

He also said there was an increasing amount of prospective projects within Malaysia, as well as, the Asia Pacific region, and the group was well-positioned to bid for them, no matter big or small.

"We will leverage on the combined knowledge and experience of THHE and McDermott to engineer, design and provide innovative and cost-effective solutions for these projects," he added.