KUCHING: Steel fabricator KKB Engineering Bhd expects to operate in a tougher business environment this year due to uncertainities in the global economy.
KKB said the volatility of global raw material steel prices, fluctuation of exchange rates and escalation costs due to inflationary pressure were factors that might impact the group’s performance.
However, the group remains positive that many opportunities would present itself, be it from Sarawak Corridor of Renewable Energy (SCORE) or non-SCORE porojects, as the federal and state governments are committed to ensure continuous social and economic development in the energy, infrastructure, water and telecommunication sectors throughout Sarawak and Sabah.
KKB said the group’s diversified portfolios provided a resilient platform to migitate adverse market conditions and uncertainities.
“We remain focused and continue our efforts to strengthen and grow our core business in both the engineering and manufacturing activities based on strong fundamentals to optimise our operations for sustainability and long term growth for the group.
“The group continues to explore opportunities available in our specialised and growing structural-steel engineering services with more focus to be given to the energy-related projects and a long-term objective to participate in the oil and gas industry with strategic partner(s),” said KKB when commenting on the 2015 prospects and outlook in its newly released 2014 annual report.
Under the engineering sector, the group’s business activities include steel fabrication, hot-dip galvanising and civil construction while the manufacturing sector’s operations cover LPG cylinder and steel pipes making.
Seeing 2015 as another challenging year on the back of the government’s move to cut back on some of its major infrastructural projects, KKB said its associate company, OceanMight Sdn Bhd, would use its maiden project that involves the fabrication, hook-up and commissioning services for Tanjong Baram wellhead platform secured recently as a springboard to bid for more related jobs.
In his statement, KKB chairman and group managing director Datuk Kho Kak Beng said the group’s performance last year was affected by the global economic slowdown and volatility following uncertainities over monetary policy adjustments in advanced economies as well as stiff competition within the industry.