Ni Hsin invest RM10m for new venture into marine, O&G segments

By BERNAMA / Pic By TMR File

COOKWARE manufacturer Ni Hsin Resources Bhd will be investing RM10 million in Satumarin Sdn Bhd as part of its expansion into the marine and oil and gas (O&G) sectors.

This followed Ni Hsin’s 49% stake purchase in Satumarin for RM735,000 in cash, said Ni Hsin ED Rizvi Abdul Halim, adding that the remaining 51% of Satumarin shares would continue to be held by its existing shareholders.

“Ni Hsin will provide financial and management support to Satumarin’s business, while Satumarin will focus on securing the contracts and operations,” he said in his speech at the SSA signing ceremony in Kuala Lumpur yesterday.

Satumarin is a Petroliam Nasional Bhd-licensed company, which provides a broad range of marine specialised services for the O&G industry within the South-East Asian region.

Rizvi said upon the successful transfer of the shares to Ni Hsin, it would subscribe for up to 9,265,000 redeemable preference shares for a RM9.26 million in Satumarin within five years.

“Ni Hsin has intended to venture into O&G business a few years ago, but we put it on hold due to the downturn in the industry then.

“The timing for the investment in Satumarin now presented to us with an opportunity to participate in a niche business activity of O&G industry, as well as expanding Ni Hsin’s future revenue streams,” he said.

Ni Hsin expects the new segment’s ideal contribution to be about 20% to the group revenue for next year, he said.

Ni Hsin group chairman Sofiyan Yahya (picture) said the new venture would open up opportunities for the group to expand into the marine and O&G sectors, as well as to enlarge the market opportunities in Malaysia, Asean region and beyond.

“We are already familiar with the global market, hence will further enhance Satumarin’s global aspirations.

“Satumarin is also evolving and expanding into new specialised services as a result of their extensive experience and expertise providing a range of marine services for the marine and O&G sectors,” he added.

Meanwhile, in the press conference, Satumarin MD Mohd Zailani Abdul Razak said the company has put on bids worth about RM20 million for marine contracts in Malaysia.

He believes that the company has been shortlisted in several of the tenders.

According to Mohd Zailani, through the partnership with Ni Hsin, Satumarin would have a more solid base to further expand its market share in existing business, while venturing into a new market such as the marine warranty surveyor (MWS).

“MWS is an essential service to reduce the risk of loss or damage in high-value marine construction and transportation projects, and we intend to establish, manage and operate a new arm for this with 100% local manpower expertise,” he added. — Bernama