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KNM eyes West Asian market
The Star - 6
October 2004
KNM Group Bhd, a manufacturer of process equipment for the
petrochemical industry, expects to secure more orders from West Asia
after completing the acquisition of a 50% stake in a Dubai-based plant
owned by FBM-Hudson Italiana SpA (FBM) of Italy.
KNM will enter into a joint venture with FBM through KNM
International Sdn Bhd, a wholly-owned subsidiary, by purchasing a
company owned by the Italian firm and currently operating in Dubai’s
Jebel Ali Free Zone in the United Arab Emirates for RM45.6mil cash.
The completion of the purchase, expected this month, would enable KNM
to increase its overseas projects, particularly in supplying air fin
coolers in which FBM had technical expertise, KNM managing director Lee
Swee Eng said after the company EGM in Kuala Lumpur yesterday.
The joint venture calls for total investments of RM18.24mil by both
KNM and FBM for working capital.
KNM’s order book now stands at RM293mil, with 75% coming from
overseas contracts.
Lee expected the overseas contracts to surpass the 75% contributions
mark due to tremendous opportunities in the global petrochemical
industry and especially with KNM’s increased production capacity in
China and West Asia.
He said KNM was also bidding for RM1bil worth of projects and hoped
to receive confirmation on some of them by next year.
The company’s market focus would be on West Asia, Australia, Canada
and China. KNM will in-vest RM30mil next year to double its capacity in
China. – Bernama |
