Malaysia Marine and Heavy Engineering to diversify

Malaysia Marine and Heavy Engineering to diversify

Kuala Lumpur: Offshore and marine shipyard Malaysia Marine and Heavy Engineering (MMHE) is looking to expand into the downstream and onshore sectors this year, amid the challenging outlook in the oil and gas market.

Abu Fitri Abd Jalil, managing director of MMHE said diversification is needed now as market players are hungry for projects in order to remain sustainable and profitable.

“We are not on the losing side in the upstream and offshore segments but since we have the capabilities, we are also going to focus on the downstream and onshore segments,” said Abu Fitri.

“We are doing more engineering, procurement, construction, installation and hook-up/commissioning and the amount of risk that we are taking is very large,” Datuk Nasarudin Md Idris, chairman of the company said.

The company is currently bidding RM7bn ($1.9bn) worth of jobs but could not estimate the success rate as oil majors are reducing their investments since oil prices fell last year.

According to Datuk Nasarudin Md Idris, MMHE has RM1.6bn ($442.4m) of backlog jobs that should last until the third quarter of 2016.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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