Bernama reported that Eversendai Corporation Bhd is talking to the awardees of the Mass Rapid Transit Sungai Buloh Kajang Line to undertake some of the steel jobs dished out in the MYR 30 billion rail project.

Mr AK Nathan founder & chairman of Eversendai Corporation said that there were immense opportunities for the steel fabricator to tap into as most of the MRT stations and all the depots would be built in steel. He added that "We're positive of the prospects. We see huge opportunities in the structural steel scope."

Mr Nathan said the MRT, Malayia's biggest infrastructure project, would complement Eversendai's target to increase contribution of the Malaysian business to the group's overall turnover. He added that "Currently, the Malaysian business' contribution is about 6.3%. This year we expect to hit about 8% from our revenue. We've set a target to at least achieve 12% to 15% in 2013. The MRT project will play a big role if we manage to secure some of the contracts."

The MRT Sungai Buloh Kajang Line, the first of the proposed three railway lines, stretches 51 kilometers, with 31 stations. The project has been divided into 85 work packages and 40 tenders have been awarded.

Besides the MRT, its subsidiary, Shineversendai Engineering (M) Sdn Bhd, has been appointed the supplier for the iron ore distribution project in Teluk Rubiah in Manjung, Perak, worth MYR 45.9 million.

The company was also recently appointed as the major sub contractor for steel structure fabrication and erection works for the Tokuyama Malaysia's polycrystalline silicon project in Bintulu worth MYR 37.1 million.

Apart from bidding for new projects inter related to Eversendai's core business, the specialist structural steel and power plant contractor has elevated itself to become the main contractor for high rise towers using composite structures in Malaysia.

Mr Nathan said that "We're creating new business opportunities for the group by bringing in innovations by using composite structures for tall buildings. Eversendai has spoken to some local developers who have shown interest to embark on using such innovative construction methodology. In general, people have a perception that composite is a combination of steel and concrete, and feel that steel is more expensive than concrete. Actually, it can be comparative, but at large, we see the benefits by using composite structure."

Mr Nathan also said "Eversendai has a lot of exposure in executing many international projects of tall structures using composite structures, and now we're bringing back what we've learned and used from various projects abroad back to the local front."

Mr Nathan, who was ranked 27th in the Forbes 2012 Malaysia Top 40 Richest, with an approximate net worth of MYR 931.35 million, said Eversendai was set to invest about MYR 30 million to expand its fabrication facility in Rawang. The company is planning to move its blasting and painting section to a new factory while increasing the present fabrication capacity in the current factory.

He said that "It was not part of the plan actually, but given that we're getting more and more business in Malaysia, I think it's appropriate to have extra facilities. By having the new facility, we'll be able to increase the overall business, which will eventually help to bolster turnover and profit."

Mr Nathan said that the equipment and construction for the new factory would cost up to MYR 15 million, while the balance would be used to buy the land.

Eversendai's profit after tax rose to MYR 29.76 million for the first quarter ended March 31st 2012 as compared with MYR 25.48 million in the same quarter of 2011. Revenue also rose to MYR 248.96 million from MYR 207.85 million.

Source - Bernama

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