ID :
110514
Mon, 03/08/2010 - 17:08
Auther :
Shortlink :
https://oananews.org//node/110514
The shortlink copeid
PANTECH GROUP TO INVEST 15 MLN RIYALS IN SAUDI PLANT
KUALA LUMPUR, March 8 (Bernama) -- Pantech Group Holdings Bhd is venturing
abroad to establish a 15 million riyal (RM13.45 million) carbon steel fittings
plant in Dammam, Saudi Arabia.
Executive Director Adrian Tan said the first phase of the plant is expected
to be ready before the financil year ending Feb 28, 2011.
Pantech, a pipes, fittings and flow control manufacturer for the oil and gas
industry, expects revenue of 50 million riyals (RM44.85 million) to be generated
in the first year of the plant's operations in the oil-rich Gulf region.
Tan said this after the signing of a memorandum of understanding (MoU) and
agency agreement between Pantech International (KSA) Sdn Bhd and Saudi-based
Abdul Rahman Al-Otaishan Trading Group (Al-Otaishan Group) here Monday.
The signing ceremony was witnessed by Deputy Finance Minister I,
Chor Chee Heung.
The agreements will facilitate the establishment of a joint investment
company, in which Pantech Group will own 49 per cent equity while Al-Otaishan
Group will hold the remaining 51 per cent.
Al-Otaishan will be the sole distributor and agent for Pantech's products in
Saudi Arabia and non-exclusive distributor and agent in the other Gulf
Cooperation Council (GCC) countries.
Established in 1982, the Al-Otaishan Group is a leading general contractor
involved in the production of crude oil and numerous other downstream
petrochemical industries in Dammam.
Tan said within three years, Pantech hoped its overseas operations would
contribute about 40 per cent to group revenue, from 27 per cent at present.
He added for the financial year ended Feb 28, 2009, the group hoped to
maintain its profit level while a slight drop was expected in revenue given the
slump in demand and high prices for steel products.
In line with its growth plan, Tan said the group hoped to commence
operations of its new RM80 million (US$1=RM3.4) stainless steel, alloy pipes and
fittings
plant in Pasir Gudang, Johore, by year-end.
Pantech Group currently manufactures butt-welded carbon steel fittings such
as elbows, tees, reducers and long bends at its Klang plant, 80 per cent of
which is exported to the United States, South America and the Middle East.
-- BERNAMA
abroad to establish a 15 million riyal (RM13.45 million) carbon steel fittings
plant in Dammam, Saudi Arabia.
Executive Director Adrian Tan said the first phase of the plant is expected
to be ready before the financil year ending Feb 28, 2011.
Pantech, a pipes, fittings and flow control manufacturer for the oil and gas
industry, expects revenue of 50 million riyals (RM44.85 million) to be generated
in the first year of the plant's operations in the oil-rich Gulf region.
Tan said this after the signing of a memorandum of understanding (MoU) and
agency agreement between Pantech International (KSA) Sdn Bhd and Saudi-based
Abdul Rahman Al-Otaishan Trading Group (Al-Otaishan Group) here Monday.
The signing ceremony was witnessed by Deputy Finance Minister I,
Chor Chee Heung.
The agreements will facilitate the establishment of a joint investment
company, in which Pantech Group will own 49 per cent equity while Al-Otaishan
Group will hold the remaining 51 per cent.
Al-Otaishan will be the sole distributor and agent for Pantech's products in
Saudi Arabia and non-exclusive distributor and agent in the other Gulf
Cooperation Council (GCC) countries.
Established in 1982, the Al-Otaishan Group is a leading general contractor
involved in the production of crude oil and numerous other downstream
petrochemical industries in Dammam.
Tan said within three years, Pantech hoped its overseas operations would
contribute about 40 per cent to group revenue, from 27 per cent at present.
He added for the financial year ended Feb 28, 2009, the group hoped to
maintain its profit level while a slight drop was expected in revenue given the
slump in demand and high prices for steel products.
In line with its growth plan, Tan said the group hoped to commence
operations of its new RM80 million (US$1=RM3.4) stainless steel, alloy pipes and
fittings
plant in Pasir Gudang, Johore, by year-end.
Pantech Group currently manufactures butt-welded carbon steel fittings such
as elbows, tees, reducers and long bends at its Klang plant, 80 per cent of
which is exported to the United States, South America and the Middle East.
-- BERNAMA
