KUCHING: Sarawak Consolidated Industries Bhd (SCIB) is scouting for an acquisition in order to venture into the oil & gas (O&G) industry.
According to group managing director Rosland Othman, SCIB is on the lookout to acquire another company with a license to enable it to undertake civil infrastructure works in Malaysia’s O&G sector.
“To pursue projects in the O&G sector, SCIB is in the process of obtaining a licence from Petroliam Nasional Bhd while at the same time, it is looking to acquire another company with a licence to allow it to undertake the civil infrastructure works in Malaysia’s O&G sector, ” he added in the company’s 2019 annual report released last week.
SCIB, whose traditional core business is in the manufacturing of precast concrete products and industrialised building system (IBS) components, has expanded its business beyond Malaysia after Sarawakian tycoon Datuk Dr Mohd Abdul Karim Abdullah took over control of the company recently.
Mohd Abdul Karim, who is SCIB chairman, owns a 47.53% stake in the company. He is also group managing director of Serba Dinamik Holdings Bhd, a global integrated engineering solutions provider.
Last month, SCIB clinched three major engineering, procurement, construction and commissioning (EPCC) contracts worth about RM864.5mil in Qatar and Oman for residential villas and service centre projects.
The company had earlier secured five other EPCC contracts valued at RM175.4mil in Malaysia, Qatar, Oman and Indonesia, marking its foray into overseas market.
Rosland said SCIB is actively looking out for engineering, manufacturing, construction and commissioning (EMCC) jobs to strengthen its construction foothold and to build a credible track record in the construction industry.
“We want to position SCIB as the one-stop integrated provider in civil construction and to achieve the synergies between the core business of precast concrete manufacturing and the construction works, ” he added.
He said the recent contracts’ wins would help to strengthen the company’s foothold across the Middle East region.
“Up until now, SCIB has total up RM1.1bil order book and is currently on track with our internal target of RM1.5bil for 2020.”
According to Rosland, SCIB’s construction division intends to push out into Indonesia, Oman and Qatar as an initiative towards business diversification.
“Indonesia would be undergoing one massive construction project to relocate its capital to Kalimantan (from Jakata) while Qatar’s hosting of the FIFA World Cup 2022 and the development of a special economic zone in Oman presents opportunities for the company to explore, ” he added.
At the same time, Rosland said SCIB would continue to leverage on its strong presence and local base in Sarawak where several mega infrastructure projects are ongoing or in the pipeline.
These include Pan Borneo Highway, Sarawak Coastal Road & Bridges, state electricity and water grid programmes as well as the proposed Sarawak Second Trunk Road.
Last month, SCIB announced it is to undertake a proposed private placement that could raise up to RM66.52mil via an issuance of up to 36.75 million new shares.
Did you find this article insightful?
100% readers found this article insightful