Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) reported Tuesday that its subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) and Eastern Pacific Industrial Corp. Berhad (EPIC) entered into an agreement to set up a joint venture company (JVC), MMHE EPIC Marine & Services Sdn Bhd, to provide ship repair services, including dry docking repair, refit, refurbishment, maintenance and technical solutions at facilities located in Kemaman, Terengganu, Malaysia.
MMHE will have a 70 percent stake in the joint venture, while EPIC will hold the remaining 30 percent. The JVC will tap on MMHE’s existing expertise in marine and oil & gas (O&G) services and EPIC’s integrated facilities in Kemaman.
MMHE is focused on ship repairs, dry docking upgrading, conversions, modifications and other shipyard-related business activities as well as the provision of full engineering, procurement, construction, installation and commissioning for the offshore O&G industry. EPIC is a service and facilities provider for the marine and O&G industries, offering an integrated customs bonded supply base, fabrication, threading, shut-down and maintenance services.
"MMHE EPIC Marine & Services Sdn Bhd has the competency and capabilities to deliver solutions -- dry docking repair services within target cost and schedule; while maintaining the highest performance in safety, quality and ethics. Equipped with the proven track record of both EPIC and MMHE, the JVC aspires to become a major player in the marine repair and services industry," MMHE’s Acting CEO Wan Mashitah Wan Abdullah Sani said in the press release.
"Being a State-linked company, this Joint Venture agreement with MMHE can also be seen as part of the State’s sub-projects, in order to spearhead the oil and gas industrial sectors to grow stronger, and further contribute to the state’s economic sector," Noor Fadzil Mohamed Nor, group managing director and CEO of EPIC commented.
To support the JVC’s business, MMHE and EPIC have acquired a 5,000-ton floating dock from South Korea's Yeisu Ocean Co Ltd. The floating dock, which was completed July 19, has been delivered to Kemaman July 30.
"Recognizing the needs of the ship-owners operating in the East Coast of Malaysia to have better access to repair and dry docking services nearer to their operations base, we believe the JVC is able to offer an attractive value proposition that will optimize ship owners and operators’ vessel availability and reduction in operations’ cost due to the strategic location of the facilities in Kemaman," Wan Mashitah added.
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