Eversendai boosts presence in Mid-East - Monday July 5, 2004

By Hong Boon How THE Middle East has been portrayed as a region in turmoil but Malaysia-based Eversendai Engineering group has a different view. Its group managing director Datuk A.K. Nathan said that contrary to what had been reported in the media, the Middle East countries, especially those in the Gulf region, were enjoying a period of prosperity, stability, and rapid development.

“Many international construction companies have already set up their bases in the Gulf states to capture the region's lucrative construction contracts,” he told StarBiz in an interview in Kuala Lumpur.

The Eversendai group is involved in the supply, fabrication and erection of steel structures for high-rise buildings as well as low-rise ones such as stadiums and shopping malls.

The group has already established itself as a major contractor of steel structures in the region.

Nathan said the Middle East market was demanding and that contractors must be able to deliver their projects on time.

“We have built a name for ourselves as we were able to finish our jobs within the stipulated period without compromising on quality or safety,” he said.

Nathan said Malaysian construction companies that had good track records and proper financing should be able to bid for and win contracts in the Middle East.

“In view of fewer new construction jobs in Malaysia, local contractors should give a second look at new projects being launched in the Middle East,” he said.

Nathan said that by venturing abroad, Malaysian construction companies would be able to export their expertise and earn foreign exchange.

“We can also show foreign companies that Malaysia's construction industry has come of age, and is able to compete among the leading players in the international field,” he said.

Besides contracts in the United Arab Emirates, Qatar and Saudi Arabia, Eversendai has also completed structural steel-related jobs in Malaysia, Singapore, India, Indonesia, the Philippines and Hong Kong.

At present, Eversendai has ongoing projects totalling RM150mil in the Middle East.

Its latest contracts include the supply, fabrication and erection of structural steel works for the 1km long Chinatown International City Mall in Dubai, the United Arab Emirates.

The steel works contract, valued at RM70mil, involves the usage of 20,000 tonnes of structural steel.

The Chinatown mall will be shaped like a dragon and used to display products from China.

“We managed to set a new record in April when we installed 6,300 tonnes of structural steel for the mall project,” he said.

Among Eversendai's recently completed contracts in Dubai was the supply, fabrication and erection of structural steel works for the three-storey connection bridge of the Dubai International Financial Centre (DIFC).

The connection bridge links the top floors of two 12-storey buildings, making the building look like a gate. The contract was valued at RM9mil.

Other projects being undertaken by Eversendai in the United Arab Emirates include concrete core and steel works for the 52-storey Marina Crown hotel and service apartments, and steel works for a 107m high ski ramp. Both projects are in Dubai.

The group was also awarded a RM31mil contract for the refurbishment and redevelopment of the lighting and roof portion of the Khalifa Sports Stadium in Doha, Qatar.

“Structural steel erection works are complicated tasks and require suitable methodologies to put things together,” he said.

Eversendai's notable projects in the Middle East included the erection of the 120m high observation deck atop the 30-storey high Kingdom Trade Centre in Riyadh, Saudi Arabia, in 2001, and the steel works on Dubai's Burj Al Arab Hotel in 1996.

On the local front, Eversendai's ongoing projects are valued at RM225mil.

Among its major projects is the RM165mil contract for the boiler portion of the 2,100MW Tanjung Bin coal-powered plant in Johor.

Its scope of work covers the erection of mechanical works for boiler plant, consisting of boiler pressure and non-pressure parts, steel structures, ducting, piping, gas air heater, electrostatic precipitator, mill plant, coal bunker, insulation, cladding and instrumentation.

The project, which uses 61,200 tonnes of steel, is Eversendai's single largest job in Malaysia.

Eversendai was also involved in the structural steel erection and mechanical works for the 2,100MW Manjong power station in Lumut in 2000/01.

The group was part of the South Korean-led consortium that built Tower Two of the Petronas Twin Towers.

It also was involved in the construction of the Kuala Lumpur City Centre's (KLCC) retail centre, the KL International Airport’s main terminal building and contact pier, and the KL Tower gondola and mast.

Eversendai also supplied, fabricated and executed the structural steel works for the Putrajaya Convention Centre in 2002. The project consumed 6,800 tonnes of structural steel.

Other local projects being undertaken by Eversendai include the supply, fabrication and erection of steel works for the Customs, Immigration and Quarantine checkpoint in Johor Baru, and the construction of 13 stations along the Ipoh-Rawang electrified double-track project.

Nathan also said Eversendai had won steel works contracts in Singapore for Changi International Airport's Terminal 3 valued at RM30mil, Circle Line MRT Boulevard station (RM6mil) and the Changi water reclamation plant (RM4.4mil).

The group has a workforce of 1,500 worldwide, of which 500 are engaged on contract basis.

Eversendai records revenue of between RM100mil and RM150mil annually.

“Although our company is qualified for a listing on Bursa Malaysia, we will make the decision to do so when the time is right,” Nathan added.