JV & Shareholders Agreement to Set Up Fabrication Yard in Terengganu
Eastern Pacific Offshore Fabrication Sdn Bhd, a wholly owned subsidiary of Eastern Pacific Industrial Corporation Berhad, had entered into a Joint Venture & Shareholders' Agreement with Offshore Construction & Engineering Sdn Bhd, a wholly owned subsidiary of Offshoreworks Sdn Bhd (OWS) on 31 December 2007 to jointly establish and operate an offshore and marine fabrication yard in the State of Terengganu vis-a-vis a joint venture company to be formed known as Terengganu Fabricators Sdn Bhd (T-Fab).
Subject to the provisions of the Agreement, within 14 days from the date of this Agreement or the date of the incorporation of T-Fab, whichever date shall be the later, each party shall subscribe for proportions of new ordinary shares of RM1.00 each; being the initial paid-up share capital of T-Fab.
The business of T-Fab pursuant to the Project shall be to establish, maintain, operate and manage an offshore and marine major fabrication yard at the Project Site; to undertake oil and gas engineering and construction completion of offshore structures such as topside, jacket, platform, modules and the like at the Project Site; to undertake the marine vessels constructions and repairs; and such other business as may be approved by the shareholders from time to time.
The Project is in line with EPIC's strategic growth direction to enlarge its earning base and to enhance the Group's involvement in the oil and gas industry. The Agreement thus provide an opportunity for EPIC to be involved in the oil and gas engineering, construction and completion of offshore structures such as topside, jacket, platform, modules and to undertake the construction and repair of marine vessels.
The Project is an extension to the successful acquisition by EPIC of a 70% equity interest in Mushtari Engineering Trading Sdn Bhd ("MET"), which was completed in October 2007. MET is involved in minor fabrication, mechanical and civil engineering works.
The Project is also in line with the recent launch of the East Cost Economic Region, which had earmarked the Kemaman area for boat building & repairs and heavy industries.
The Agreement is available for inspection at the principal office of the Company at 1118, Jalan Pejabat, 20200 Kuala Terengganu, Terengganu for one (1) month from the date of this Announcement during normal business hours from Sunday to Thursday.