Fitters Diversified subsidiary eyes 10% share of the domestic water pipe market by 2015

Fitters Diversified subsidiary eyes 10% share of the domestic water pipe market by 2015
Business & Markets 2014
Written by Surin Murugiah of theedgemalaysia.com
Thursday, 20 March 2014 14:32

KUALA LUMPUR (March 20): Fitters Diversified Bhd subsidiary Molecor (SEA) Sdn Bhd (Molecor SEA) is eyeing to capture 10% share of the domestic water pipe market by 2015, said Molecor chairman Datuk Ir Low Keng Kok.

In a statement Thursday, Low said the company was entering the the South East Asia region water pipe market after securing exclusive rights to manufacture and market PVC-O pipes under the “Hypro” brand.

Molecor SEA is 65% owned by Fitters, with the balance 25% and 10% stakes held respectively by Ricwil (Malaysia) Sdn Bhd and Molecor Tecnologia S.L.

Low said Molecor Tecnologia developed and patented the “molecular orientation” technology that gives PVC-O pipes higher impact resistance and longer lifespan of up to 50 years, compared to the 30-year lifespan of conventional steel-based pipes.

He said the company would invest RM80 million in capital expenditure for its manufacturing plant in Kuantan.

Low said Hypro PVC-O pipes were much lighter than conventional pipes, explaining that a 6”-diameter PVC-O pipe typically weighs 18kg, approximately one-tenth the weight of a similar-sized ductile iron pipe.

He said the lighter weight of PVC-O pipes resulted in cost savings in transportation, and were made for easier and speedier installation.

He added that the Hypro PVC-O pipes were resistant to corrosion and natural chemical substances to ensure consistent fluid quality.

“They are also ideal for high-pressure water transport from water treatment plants to distribution pipeline for industrial and household usage. Moreover, the completely watertight joints prevent leakage during fluid transport,” he said.

Low said the current water crisis in Malaysia highlights the urgent need for pipe-replacement initiatives,
so as to minimise water interruption and prevent further unnecessary wastage of water.

“Hence, we are confident that this venture into the water pipe sector is indeed timely.

“PVC-O pipes produced using Molecor’s technology have a track record of effective implementations in several countries to date, including Australia, Italy, France, Spain, South Africa, and Ecuador.

“We certainly hope to replicate that success in Malaysia, and for a start, aim to capture 10% share of the domestic water pipe market within the first full year of operations,” he said.