Business

Saturday June 20, 2009

Wah Seong to bid for piping projects in Australia and Asean

By DAVID TAN


GEORGE TOWN: Wah Seong Corp Bhd hopes to supply pipes for water and other infrastructure projects in Australia and Asean.

Group chief executive officer and managing director Chan Cheu Leong said the Australian government was spending a lot on water transmission projects that required pipes with high specifications, and the group’s industrial services division was in the process of tendering for such projects.

“In the Asean region, too, where the governments are implementing stimulus packages, there are a lot of opportunities, especially in the infrastructure and agro-based sectors.

“In Singapore, we will bid for some RM400mil worth of piping projects that will be tendered out in the next six months,” he said after the company’s AGM yesterday.

He said with the strengthening of crude palm oil prices, it also expected the agro-based industry to revive expansion plans, which were put on hold due to the sharp plunge in prices late last year.

“Our customers comprise many palm oil mills and plantation owners,” he said.

Chan added that the industrial services division also planned to expand its customer base to Vietnam and Thailand.

Wah Seong recently spent RM15mil to upgrade its plant in Seberang Prai which produces spiral steel pipes for its industrial services division. “The upgrading exercise has enabled us to increase production to 100,000 tonnes of pipes per annum from the present 60,000 tonnes,” he said.

On its oil and gas business, Chan said it contributed about 76% of the group’s RM1.36bil order book.

“The group is bidding for local and overseas projects, including major pipe-coating projects in the Australasia region.

“We are also tendering for gas compressors rental contracts in the Middle East and Asia Pacific,” he said.


WASEONG : [Stock Watch] [News]

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