KUCHING: SIG Gases Bhd plans to build a new production and refilling plant in Samalaju Industrial Park, Bintulu Division which caters to energy-intensive industries.
Executive chairman Peh Lam Hoh said the company had purchased a 60-year lease land measuring 12.14ha for the new plant project.
The land was acquired two months ago by wholly-owned subsidiary Southern Industrial Gas Sdn Bhd for about RM2.69mil, with annual rent of RM6,070.
Peh said SIG associate company – Iwatani-SIG Industrial Gas Sdn Bhd – was to have completed its second air separation unit (ASU) in Samalaju Industrial Park last month to meet the growing demand from manufacturers operating in the Sarawak Corridor of Renewable Energy (SCORE).
“This would be the first step towards increasing production of industrial gases for the vicinity,” he added in the company’s newly released 2014 annual report. The first ASU was commissioned in 2013.
Peh said with the realignment of the production and distribution centre from Puchong, Selangor to Nilai, Negri Sembilan last year, SIG group had effectively consolidated the operations as well as focussing its resources to provide quality services to customers in central peninsula.
“Altogether, SIG boasts of strategically located production plants in Johor, Negri Sembilan and Sarawak which are supported by our comprehensive network of refuelling and distribution stations nationwide, from Krubong in Malacca and Gebeng in Kuantan to Ipoh in Perak, Bukit Minyak in Penang and Grandmet Industrial Estate in Bintulu, Sarawak,” he added.
Peh said the group would continue to introduce new products, comprising special gases, so that it had a comprehensive range of products for its expanding customer base.
These growth plans, according to him, would be accompanied by the group’s continued efforts on improving productivity and cost efficiency as a sustainable means of enhancing its profitability.
He said the company had made good progress in developing eight units of semi-detached factories in Bintulu, with two units to be for its own use and the rest to be sold. These factories are expected to be ready later this year.
On the industry outlook, Peh said the Malaysian economy was expected to continue with its stable growth this year, with Bank Negara forecasting GPD growth of between 4% and 5% anchored by stronger consumer demand and increase activities in the manufacturing sector.
This positive outlook,according to Peh, certainly paints a bright future ahead for the industrial gases sector.
“SIG intends to leverage on our strong foundation thus far to tap into this vast potential. Specifically, we are focussing our attention in making a significant mark in East Malaysia,given the vast investments into the manufacturing sector in SCORE in the coming years.”
For financial year ended Dec 31, 2015, SIG posted net profit of RM9.9mil, aided by reversal of deferred tax of RM7.8mil arising from the recognition of reinvestment allowance on capital expenditures.
Group revenue rose by 3.6% to RM65.4mil from RM63.1mil in 2013.