Listed Companies' Announcement
FEDERAL INTERNATIONAL (2000) LTD
FORMATION OF A JOINT VENTURE COMPANY BY FIVE KEY PLAYERS IN THE OIL & GAS AND PROCESS INDUSTRY TO TAP ON OPPORTUNITIES IN SAKHALIN (RUSSIA) AND THE MIDDLE-EAST
Mainboard listed Federal International (2000) Ltd one of the key players to sign MOU on a Joint Venture – "SINGA"
Singapore, October 21, 2003 – The Directors of Federal International (2000) Ltd. ("the Company") are pleased to announce that the Company has signed a Memorandum of Understanding (MOU) with Rotary Engineering Limited (REL), Hiap Seng Engineering Limited, Tiong Woon Corporation Holding Ltd and Plant Engineering Construction Pte Ltd (PEC). The MOU provides the framework and intent of the partners to establish a company, to be known as Singa Consolidated Engineers & Constructors Pte Ltd ("SINGA"), to pursue opportunities in the oil-rich regions of Sakhalin (Russia) and the Middle East.
Mr K K Koh, Executive Chairman & CEO of Federal International (2000) Ltd, said, "We are confident that the joint effort would poise us in a better position to acquire more projects and larger market share in the oil and gas and process industry. It provided us a competitive edge in the aggressive and competitive field. At the same time, the reliability and credibility, topped with the combined experiences and knowledge of the five key players would fully equip SINGA with the best weapons to expand and succeed in Sakhalin (Russia) and The Middle East."
The main objective of SINGA will be to provide construction turnkey services to the petroleum, petrochemical, specialty chemical, power plant, oil and gas, water treatment and waste treatment industries. SINGA will concentrate on exploring business opportunities only in Sakhalin (Russia) and the Middle-east countries that include the UAE, Turkey, Syria, Iraq, Iran, Kuwait, Bahrain, Qatar, Saudi Arabia, Yemen and Oman.
Upon its incorporation, SINGA will have an authorized capital of S$100 million. Leading the joint venture will be REL and Hiap Seng with each holding a 31.25 per cent stake, while Tiong Woon, Federal and PEC will each hold 12.5 per cent.
The formation of the joint venture has received a boost through the participation of International Enterprise (IE) Singapore. IE Singapore has agreed to facilitate and coordinate SINGA's move into the international arena.
This joint venture will be funded by internal resources initially, and is not expected to have any material impact on the net tangible assets or earnings per share of the company for the financial year ending 31 December 2003.
None of the Directors or controlling shareholders of the company has any interest, direct or indirect, in this joint venture.
Federal International (2000) Ltd
Listed on the Mainboard of the Singapore Exchange, Federal International (2000) Ltd ("Federal" or "the Group") is a value-added distributor and provider of turnkey EPC (engineering, procurement & construction) solutions for the energy & infrastructure industries. Currently, the group is principally involved in the distribution of flowline control products (e.g. valves, structural steel, steel flanges/ connectors and pipe fittings) to the oil and gas, power, chemical and pharmaceutical industries.
Federal has incorporated HP & T Products, Inc. (a Houston-based company) and acquired strategic stakes in KVC Co., Ltd (Japan) and KVC (UK) Ltd, companies which are involved in upstream activities such as research & development and, manufacturing of valves and valve-related equipment. By moving upstream into the design and manufacture of specialised valves and related products under the brands of HPT TM and KVC TM, Federal aims to be an integrated service provider and procurement specialist in the energy and infrastructure industries offering a complete one-stop service package.
Federal, which was established in 1974, has an extensive sales and marketing network strategically located in ASEAN, Far East and the Middle East. The Group's offices are in Indonesia, Brunei Darussalam, Thailand, PRC, Korea, Japan, UK and the USA.
Federal's local international clientele includes oil majors, drilling contractors, shipyards and refineries.
Rotary Engineering Limited (REL)
Over the last 30 years, REL has established itself as a market leader in providing EPC and total maintenance services to the oil and gas, petrochemical and pharmaceutical industries. With over 2,000 employees in offices throughout the Asia-Pacific region, the company is one of the largest local engineering companies with extensive international experience.
Hiap Seng Engineering Limited
Hiap Seng Engineering Limited is one of the major players in providing engineering, construction and plant maintenance services to the oil & gas, pharmaceutical, petrochemical and speciality chemical industries in Singapore and the regional markets for more than 30 years. The Group has a workforce of more than 2,000 throughout the region.
Tiong Woon Corporation Holding Ltd
Tiong Woon Corporation Ltd is a specialist and total integrated services provider in heavy lift, heavy haulage and marine transportation mainly serving the oil & gas, petrochemcial and power industries. Tiong Woon manages turnkey projects for international builders and contractors from planning and design of heavy lifting and haulage requirements to the execution stage in which the heavy equipment is transported, lifted and installed at customers' facilities.
Plant Engineering Construction Pte Ltd (PEC)
Plant Engineering Construction Pte Ltd is a major engineering services provider in the petroleum, petrochemical and pharmaceutical industry in Singapore. The company is known as a leader in the use of IT with in-house developed Enterprise Information System (EIS).
Issued on behalf of Federal (International) 2000 Ltd
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Submitted by Koh Kian Kiong, Director on 21/10/2003 to the SGX