Scomi

Scomi Group Bhd
Public (KLSE:SCOMI)
Industry Oil and Gas, Public Transportation
Headquarters Kuala Lumpur, Malaysia
Key people
 Kamaluddin Abdullah
Shah Hakim Zain (Chief Executive Officer)
Products Construction, Manufacturing, Shipping
Revenue Increase MYR 1 971 000 000 (2009)
Increase MYR 9 900 000 (2009)
Number of employees
 >5000 in 60 locations in 29 countries
Subsidiaries Scomi Engineering Bhd, Scomi Rail and Scomi Energy Services Bhd which are listed on Bursa Malaysia, and PT Rig Tenders which is listed on Jakarta Stock Exchange.
Website www.scomigroup.com.my

Scomi Group Berhad (MYX: 7158) is a global service provider based in Malaysia mainly involved in oil and gas and transport engineering.

Scomi Group Bhd is listed on the main board of Bursa Malaysia Securities Berhad, and its group of companies are involved in oilfield services, public transportation and marine services. The group offers drilling fluids (DF) and related engineering services, drilling waste management (DWM) solutions, distribution of oilfield products and services, marine vessel services, machine shop services, transport engineering products involving special purpose vehicles, rail wagons, monorail vehicles and buses, supply of industrial and production chemicals and carbon dioxide (CO2) separation. The group was founded in 1961 and operates across 48 locations in 22 countries.

Activities

The company provides oilfield drilling fluids and drilling waste management services and also supplies monorail projects through its Scomi Rail subsidiary. Other companies under Scomi Group listed on Bursa Malaysia Securities Berhad are Scomi Marine Berhad and Scomi Engineering Berhad.

Other companies in the Scomi group include Scomi Oilfield Limited (Bermuda), Scomi Oiltools Limited (Bermuda), Scomi Capital Limited (Labuan), Scomi International Private Limited (Singapore), Scomi Ecosolve Limited (British Virgin Islands).

The company's subsidiaries and associate companies are involved in:

History

The Scomi Group has its roots in Subang Commercial Motor Industries (S.C.O.M.I.) incorporated in 1990. In 2000, Scomi was acquired by Kaspadu Sdn Bhd a company controlled by Shah Hakim Zain and Kamaluddin Abdullah.[1]

When the founders of the company took over Subang Commercial Motor Industries, the main motivation for the acquisition was the coach building business. Eventually, the drilling fluids business became the main business for the group, which led to its listing on the then second board of Bursa Malaysia. In 2004, it bought a 71% stake in Oiltools International Ltd to expand its oil and gas business.

Not long after that it took over jewellery company Habib Corp Bhd, which would later become Scomi Marine, and it entered into a RM1.3bil deal to buy vessels from Chuan Hup and stakes in CH Offshore Ltd and PT Rig Tenders Indonesia. The company moved its engineering division into the listed shell corporation of Bell & Order Bhd, which later became Scomi Engineering in 2006.

In 2007, Scomi Engineering bought Mtrans, a bus and monorail operator, for RM25mil.

Scomi’s major shareholder is Datuk Kamaluddin Abdullah, son of former prime minister Tun Abdullah Ahmad Badawi.[2]

Monorail projects

Monorails form an area of increased focus for Scomi, as the company seeks to diversify its business lines.[3]

Scomi Engineering won a RM1.84bil bid in 2008 to build a monorail project in Mumbai with its Indian partner Larsen & Toubro. Its share of that job is RM823mil and projected margins are between 10% and 20%. The Mumbai project has since been its launch pad to compete on an international scale to grab more jobs. Once the job is completed some time mid next year, and apart from the KL Monorail, it’ll have the Mumbai monorail to further sweeten its track record.

Currently Scomi is one of only two companies in the world providing integrated monorail solutions, and this has led to it garnering business in India, in Mumbai and Bengaluru (Bangalore) [4]

Monorail projects involving Scomi:

[7]

Research

Typically, monorails carry fewer passengers than a LRT or MRT. Following research and development, Scomi announced a monorail with an eight-car configuration, versus the current four-car configuration for the monorail in Mumbai. This monorail can carry 1,000 passengers, the same as a six-car LRT.[8]

Scomi Engineering ploughs back some 20% of its revenue into research and development on trains. The next-generation monorails it is building is called Gen 3.0 and would be the size of a LRT wagon.

It is also evaluating the prospect of going into trains, where it can build LRTs or EMU (electrical multiple units), which is the kind of trains KTM uses for commuter service. [2]

Awards

The company was awarded the GreenTech Environment Excellence Silver Award 2009, by New Delhi's GreenTech Foundation. Scomi was declared the winner of the award under the engineering sector for raw materials consumption and products manufactured for buses and coaches which contributed to the protection of the environment and surrounding community. [9]

Scomi won the Industry Excellence Award 2008 given by the Malaysian Ministry of International Trade and Industry for its performance in exports. [10]

Controversies

In the past, Scomi has faced US sanctions imposed on CEO Shah Hakim Zain.[11] These sanctions arose following allegations of Scomi being part of an international nuclear proliferation programme masterminded by Pakistan's Dr A.Q. Khan.[12]

The Malaysian police announced that one of Scomi's main backers, B.S.A. Tahir, confessed to helping Dr Khan sell nuclear secrets and supplies to Iran and Libya.[13] Tahir, a Sri Lankan national, is reported to have links with international crime boss Dawood Ibrahim.[14] Tahir was detained without trial from 2006 to 2008 for allegedly being a national security risk, having been accused of fraudulently convincing a Scomi subsidiary company to produce components for centrifuges to be used in a uranium enrichment program.

Scomi has insisted that B.S.A. Tahir had misled it to believe that the parts were for the oil and gas industry. However, B.S.A. Tahir is reported to have said that Scomi's CEO, Shah Hakim Zain, and Scomi's main backer, Kamaluddin Abdullah (son of then Prime Minister Abdullah Ahmad Badawi), both knew the final destination of the products.[15] He has accused Scomi of making fraudulent declarations[16] and in 2009 he sued Shah Hakim and Kamaluddin for MYR75 million.[17]

The Inspector General of Police in Malaysia investigated these allegations in depth, and concluded that in his report that: "The management of SCOPE were unaware that the exported components were part of certain centrifuge unit for LIBYA. The management of SCOPE considered it a legitimate business deal. To untrained eyes, such components would not raise any concern, as the components are similar to components that could be used by the 'petrol -chemical industry' and 'water treatment' and various other industries."

Investigators also found that "SCOPE obtained the semi-finished product to produce the said components from a German company Bikar Metal and this gives the impression that these items are not controlled items. In view of the foregoing, the work that was carried out on the semi-finished product is legitimate and does not give rise to suspicion." (Quotes are from Police report) [18]

See also

References

  1. ↑ "''The Star'' article: "Partners through thick and thin"". Biz.thestar.com.my. 2010-08-07. Retrieved 2010-09-10.
  2. 1 2 "Scomi Group: From survival to success". Biz.thestar.com.my. 2010-08-07. Retrieved 2010-09-10.
  3. ↑ "Scomi Engineering's transformation". Biz.thestar.com.my. 2010-03-22. Retrieved 2010-09-10.
  4. ↑ Published: 2010/08/23 Share tweetmeme_style = 'compact'; (2010-08-23). "Karnataka accepts Scomi-Geodesic plan". Btimes.com.my. Retrieved 2010-09-10.
  5. ↑ "Get On Track with Scomi (February 2010) (Full Version)". Scomirail.com.my. Retrieved 2010-09-10.
  6. ↑ “” (2010-01-26). "Bernama - Scomi monorail projects in India". YouTube. Retrieved 2010-09-10.
  7. ↑ “” (2010-01-26). "Mumbai's Republic Day gift". YouTube. Retrieved 2010-09-10.
  8. ↑ “” (2010-09-05). "Combined Monorail Videos.wmv". YouTube. Retrieved 2010-09-10.
  9. ↑ Vaibhav Arora. "Scomi awarded the Greentech Environment Excellence Silver Award 2009". Indiaprwire.com. Retrieved 2010-09-10.
  10. ↑ "Scomi wins excellence award". Theedgemalaysia.com. 2009-03-16. Retrieved 2010-09-10.
  11. ↑ "Star article". Biz.thestar.com.my. 2010-08-07. Retrieved 2010-09-10.
  12. ↑ Bill Powell and Tim McGirk, "The Man Who Sold the Bomb; How Pakistan's A.Q. Khan outwitted Western intelligence to build a global nuclear-smuggling ring that made the world a more dangerous place", Time Magazine, 14 February 2005, p. 22.
  13. ↑ "Nuclear scandal: Man 'confesses'. 20 Feb., 2004". Edition.cnn.com. 2004-02-20. Retrieved 2010-09-10.
  14. ↑ MARC LOURDES (2005-01-14). "Dawood Ibrahim biography". Thestar.com.my. Retrieved 2010-09-10.
  15. ↑ Malaysia Today article
  16. ↑ Malaysia Today article
  17. ↑ "Straits Times article". News.asiaone.com. 2010-03-04. Retrieved 2010-09-10.
  18. ↑ Archives | The Star Online. Thestar.com.my. Retrieved on 2013-07-29.
This article is issued from Wikipedia - version of the 11/28/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.