Ramunia, S. Korean firm to set up plant
The Star
27 April 2006

KUALA LUMPUR: Ramunia Holdings Bhd is teaming up with South Korea-based Sam Kang Industries Co Ltd to set up a steel tubular manufacturing plant, believed to be the second of its kind in South-East Asia, in Johor this year.

Ramunia managing director Arshad Ahmad said the equity interest had not been determined, but the initial investment in the proposed tubular rolling services was about US$10mil.

Ramunia, which is involved in oil and gas offshore platform fabrication activities, will provide the staff and has earmarked a 10 acre site adjoining its Teluk Ramunia fabrication yard in Johor for the plant. Sam Kang will provide the machinery and expertise.

Arshad said after the AGM yesterday the plant, which would have a maximum production capacity of 30,000 tonnes of roller tubular steel per annum, would be operational by early 2007.

“Details of the joint venture would be finalized by end-October,” he said.

The main target markets for the products, used to support the main structures of the offshore platform, were Petroliam Nasional Bhd and its production sharing partners, Arshad said, adding that the products were currently sourced from overseas, mainly from South Korea.

“The plant will help us save a lot in terms of shipping freights and will definitely make us very competitive,” he said.

South-East Asia’s first rolled steel tubular plant is in Batam, Indonesia.

Ramunia is currently competing head-on with three other major players and Arshad said the group had a 30% market share in the RM2bil per-annum industry.

On the company’s operations, he said Ramunia was bidding for projects worth RM3.3bil, of which 15% was from overseas, including India, Saudi Arabia and Qatar.

The group’s order book now stood at over RM600mil and would last until September next year, Arshad said, adding that of the amount, RM330mil would be realized as revenue in the financial year ending Oct 31, 2006.

On the industry outlook, he said due to the high oil price, the oil and gas sector was now very bullish.

“Many projects, which were not viable before, have become viable now and companies are rushing to develop them,” he said.