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THHE looking outside Malaysia to maintain profitability

THHE looking outside Malaysia to maintain profitability
Malaysian offshore fabrication specialist firm TH Heavy Engineering (THHE) is planning to go international this year to ensure it remains profitable following continued challenges in the industry due to lower oil prices, local reports said.

THHE ceo Nusral Danir said the company was in discussions with several parties on potential offshore fabrication projects in Myanmar, Thailand and India.

“We are hopeful of getting good news this year,” he said.

Nusral added that THHE is also look for non-oil and gas projects to diversify its revenue stream as oil majors have been unable to award contracts and have been deferring projects with oil prices continuing to hover at $48 a barrel. 

“We used to have a total tender book of MYR2.4bn ($584m) but after the deferment, it only left us with some MYR1.7bn worth of projects.

“These projects, which were bid since last year, were mainly offshore fabrication projects and they were all secured locally,” he said.

As part of its diversification from its core offshore fabrication business, Nusral said that THHE had submitted several bids for the Rapid projects in Pengerang and it had been approached by a third party to use its yard in Pulau Indah to fabricate ships.

“However, winning projects is tough,” he said, adding that currently THHE had an orderbook of about MYR125m, which comprises the remaining works of the Kinabalu Offshore projects.

The company would also resize its workforce, depending on the number of projects secured, he said.

“We are not retrenching our people, but we need to make sure our overheads are proportionate with the orderbook. Currently we have about 294 staff mainly working in the yard on a contract basis,”he added.