PENANG, Malaysia -- Wah Seong Corp. Bhd. is set to build Asia's first deepwater pipe coating plant in Kuantan Pahang.
Construction of the facility was to begin at the end of June 2007 at the company's existing pipe coating plant in Kuantan. Completion is scheduled for early 2008.
"The decision to build the multi-million ringgit plant follows an extensive research and development exercise conducted by the company as well as to meet the surging global demand for deepwater pipe coating," Chan Cheu Leong, WSC managing director and group CEO, said at the group's seventh annual general meeting.
"WSC's extension into deepwater pipe coating is timely given the many deepwater oil and gas fields and projects set to come on stream in the near future both locally and globally," Chan said. "The move also allows us to play an extended role in the pipe coating market, which is one of the group's biggest revenue earners."
Chan said he expects the outlook of the oil and gas division to remain robust for the 2007 fiscal year due to continued global demand, especially from the Asia Pacific region. He added that recent announcements of major oil and gas discoveries from deepwater exploration, both in Malaysia and the rest of the world, would further spur investments in development of oil and gas infrastructure facilities as well as heightened demand for services such as pipe coating, supply and maintenance of gas compression packages, and engineering equipment.