Ramunia to upgrade yard
The Star
21 February 2006

Kota Tinggi: Ramunia Holdings Bhd intends to spend RM200mil over the next three years to upgrade its facilities, said managing director Arshad Ahmad.

The company also announced its latest contract with Shell worth RM94mil for the fabrication of a “topside”, putting its order book at RM505.5mil. Arshad said these jobs were expected to last the company till July 2007.

Ramunia, which fabricates offshore oil and gas-related structures for major oil players in the world, has a fabrication yard in Teluk Ramunia, Johor.

It expects to double its capacity to 60,000 tonnes at end-2006 after it takes over yard 3 that is currently leased out. The company sees another doubling of capacity on completion of its three-year development plan at the end-2008.

Arshad said the expansion was aimed at improving and upgrading the yard’s infrastructure for enhanced capability, productivity and to handle deepwater projects.

“We are talking to a few banks and also looking into the possibility of funding it through the capital market,” he told a media briefing yesterday.

Ramunia reported an unaudited revenue of RM183.2mil and a net loss of RM27.1mil for the financial year ended October 2005.

On future plans, Arshad said the company planned to set up a tubular rolling plant and a process equipment skid. It is also looking for strong technical or joint venture partners.

“We are talking with (potential) technical partners but we can’t announce (anything) yet. They are not local companies,” he added.