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Business - The Star Online

KUALA LUMPUR: Sindora Bhd aims to be the second largest clean product tanker group in the country in terms of capacity in two years, said chairman Tan Sri Muhammad Ali Hashim.

Clean product tankers usually carry refined products, such as gasoline, diesel fuel and jet fuel. Ali said the aim was achievable based on upcoming capacity with the construction of 10 vessels, worth between RM600mil and RM700mil in total, for the group.

Sindora’s new subsidiary company, Orkim Sdn Bhd, will acquire seven of the new vessels while the remaining three will go to another subsidiary, EA Technique Sdn Bhd, a 51% unit of Sindora. EA Techinque currently owns and operates six tankers and five offshore vessels while Orkim will receive its maiden tanker by year-end.

“Sindora group will have a total of 26 vessels by 2011 and the shipping segment is expected to contribute about RM200mil of annual revenue from then onwards based on the current contracts secured,” Ali told reporters after a signing ceremony to acquire stakes between units in the group.

“Seven of Orkim’s vessels under construction already secured long-term contracts of seven to 13 years by oil majors,” he added.

In the stake acquistion exercise between units in the group, EA Technique has agreed to buy 31% of Orkim on a staggered basis. For a start, EA Technique will secure a 15.1% stake in Orkim for RM9.37mil next month.

Subsequent acquisitions by EA Technique are scheduled to be completed by January 2011. Sindora currently has a 22% stake in Orkim.

Sindora managing director Rozan Mohd Sa’at said the stake buying exercise within the group was a continuity of the company’s “intrapreneur venture” involving the acquisition of equity interests in companies with vast growth potential.

“The concept is noteworthy as a novel and market-driven approach in developing entrepreneurial talent in line with Sindora’s strategic direction to strengthen its corporate growth prospects,” he said in his speech.