Ramunia in JV to set up tubular rolling facility
The Edge Daily
19 April 2007

Ramunia Holdings Bhd is forming a joint venture (JV) with Singapore-incorporated Mackra Pte Ltd to set up a tubular rolling facility in Teluk Ramunia, Johor, to cater to the local and Southeast Asia markets.

In a statement on April 19, Ramunia said it would subscribe for 70% of the initial paid-up capital of the joint venture company. The facility will have an investment outlay of about US$15 million (RM51.4 million).

“The tubular rolling facility would enable the Ramunia group to be more competitive in fabrication of oil and gas structures such as topside and jackets.

"The tubular steels facility is also to cater for the requirements of the local fabrication industry involved in oil and gas and pipeline.

“The prospect of the tubular rolling facility is positive in view of the strong demand for rolled tubular in Southeast Asia and Malaysia.

“The increase in the activities of the oil and gas industries and the expected demand from the oil majors and the local fabrication industry is expected to be sustainable and robust,” Ramunia said.

Mackra is an investment holding company specially incorporated to venture into tubular rolling business.

It had on Feb 13 entered into a technical collaboration agreement with Korea’s Sam Kang Industries Co Ltd for technical support to establish the tubular services. Sam Kang is involved in production and supply of heavy wall rolled steel tubular.