Industry News

Wah Seong Bidding For Projects Worth RM5.3 Billion

Published on 2010-03-25. Author : SpecialChem

KUALA LUMPUR -- Wah Seong Corporation Bhd is bidding for projects worth about RM5.3 billion which will include major pipe coating projects in Malaysia, Thailand, Vietnam, China and Australia.

Its Managing Director and Group Chief Executive Officer Chan Cheu Leong said the company's order book now stood at RM1.4 billion, with the bulk in pipe-coating business.

Speaking at a media briefing here, he said Wah Seong's oil and gas business is expected to benefit from the increase in oil and gas projects especially in the second-half of the year.

He said the company also saw great opportunities for its oil and gas operations in the deepwater of the "Golden Triangle" that makes up Brazil, the Gulf of Mexico and West Africa.

Chan said the company was also looking strongly at merger and acquisitions (M&A) to enhance its future growth. It has a healthy cash reserve to fund any M&A exercise, he added. As at end of last year, Wah Seong's cash flow stood at RM471.894 million.

Meanwhile, Wah Seong's Deputy Managing Director Giancarlo Maccagno said the company has submitted a proposal to acquire the entire stake of Socotherm SpA, an Italian supplier of pipe coatings which is in the midst of a debt restructuring.

He said the acquisition of Socotherm would make Wah Seong the world's second-largest pipe-coating company. "They are evaluating our proposal and we expect the result will be out by end of April." Wah Seong on Wednesday also unveiled its new logo, which will be adopted by the group's 25 subsidiaries.

Source: Wah Seong Corporation Bhd

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