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BH GLOBAL MARINE LIMITED
ANNUAL REPORT 2012
Subsequently in March 2012, Z-Power was appointed as the
service agent and authorized distributor of Lilaas As (Norway)
(“LAS”) and Valcom SRL (Italy) (“SRL”) respectively.
LAS is one of the world’s leading manufacturer of various types
of control levers and joysticks for the marine and offshore
industries with 50 years of experience in development and
production. Their new generation control levers, Azimuth
Electronic Shaft System, can be used in a wide range of
applications with all control levers and it is reliable and flexible
with minimal installation costs.
SRL is a designer and manufacturer of measurement and
control instruments for the marine and offshore, oil and gas,
chemical and petrochemical industries, among others, for
close to 40 years.
The Group operates its GSW sub-division under its 60%
owned subsidiary, Sky Holding Pte Ltd, which has a niche in
manufacturing and supplying specialty steel wires for electric
power and telecommunications cables. Sky Holding counts
major cable manufacturing companies based in G.C.C
Countries and ASEAN countries as key customers.
Oman is in themidst of industrial and infrastructure development
and hence demand for underground cables remains high.
Currently, the Group supplies these galvanised steel wires
from Singapore or China to the Middle East markets. These
imports will be then subjected to significant import tax and
high logistics expenses. In order to capitalise on this market
demand, achieve costs savings and render timelier support to
the customers in Oman, the Group has incorporated a wholly-
owned subsidiary, Global Steel Industries Pte. Ltd. (“Global
Steel”) in 2011. Subsequently, Global Steel entered into a
Joint Venture agreement with Takamul Investment Company
S.A.O.C., to establish a joint venture company, Gulf Specialty
Steel Industries LLC (“GSSI”) in the Sultanate of Oman.
GSSI will carry out the businesses of development, construction
and operation of a plant for the manufacture of galvanized steel
wire products for use in armouring cables in the Sultanate of
Oman. The ground breaking ceremony of the manufacturing
plant in Oman was held in February 2012. The plant is capable
of producing 60,000 tonnes of galvanized steel wire at an
estimated annual value of US$60 million at the initial stage.
The Group has plans to increase its capacity gradually to reach
200,000 tonnes per annum.
The Manufacturing division contributed S$19.3 million in
FY2012 (FY2011: S$17.1 million), representing about 20%
(FY2011: 16%) of the Group’s revenue. MS contributed S$16.2
million or 84% to the division’s revenue in FY2012 (FY2011:
S$11.9 million) while GSW contributed S$3.0 million or 16% to
the division’s revenue in FY2012 (FY2011: S$5.2 million). The
decrease in revenue from GSW was due to the sub-division’s
existing resources being diverted to the construction of a
steel wire plant which is scheduled to be completed by early
2Q2013.
ENGINEERING SERVICES
Engineering Services was initiated in FY2010 to provide
turnkey installation services for fire and gas, safety and security
systems and other marine sub-contracting businesses targeted
at new build, repairs and retrofitting projects. This Division also
specialises in engineering, procurement and construction
management (“EPCM”) and front end engineering design
(“FEED”) for electrical, instrumentation and telecommunications
(“EIT”) systems for onshore and offshore facilities.
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