Malaysia Marine and Heavy Engineering Holdings Berhad (MHB ) said that its wholly owned subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) , has entered into long – term agreements with key subcontractors for the provision of structural fabrication services.
These agreements have an initial period of two years, with an option for extension of an additional one year.
A selected number of qualified local subcontractors had been invited to be assessed on a technical and commercial basis. After an extensive evaluation process, MMHE has now executed agreements with the following subcontractors:
- Pristine Potential Sdn Bhd
- First Oil Engineering Sdn Bhd
- PFC Engineering Sdn Bhd
- Innoseven GTI Engineering Sdn Bhd
- Red Team Sdn Bhd
At the signing ceremony, MHB’s Managing Director & Chief Executive Officer, Mr. Dominique de Soras said, “The frame agreements are a tangible result of MHB’s ongoing transformation initiatives to enhance our core business units and operations. Through these f rame a greements, MMHE aspires to further improve the productivity and efficiency of work execution in our two fabricat ion yards in Pasir Gudang . The partnering with key subcontractors will also help establish a mutually beneficial partnership between these companies for the overall sustainability of the offshore fabrication industry .”
The frame agreements have helped MMHE to have a benchmark for costs of services and hence, have resulted in a more competitive fabrication cost structure for MMHE. The partnership forged between MMHE and the key subcontractors have enable both parties to realise the value of better cost control.
A number of contractors have also recently been awarded work packages for the fabrication projects which MMHE is now undertaking at its yards.