Federal signs procurement agreement with Gunanusa Utama
Monday, November 9 2015 - 04:10 AM WIB
SGX-listed Federal International (2000) Ltd announced that its wholly-owned subsidiary Federal Hardware Engineering Co. Pte Ltd (FHEC) has signed a master procurement agreement with affiliated firm PT Gunanusa Utama Fabricators (PTGUF).
Federal group owns a 20.7 percent stake in PTGUF. Founded in 1980, PTGUF provides project management, engineering, procurement, construction, installation and commissioning (EPCIC) services for both offshore and onshore projects in the oil and gas sectors, as well as for other heavy engineering projects.
In addition to its home market in Indonesia, PTGUF has completed projects in Myanmar, India, Thailand and Brunei. Its facilities include an 18 ha yard located about 120 km west of Jakarta. The yard has an 800 meters waterfront and 2 jetties, each with an 8,000 and a 10,000 tons load out capacity respectively.
The Federal group's strengths as a procurement specialist complement PTGUF's EPCIC capabilities, Federal said in a statement last week.
It said that under the agreement, FHEC would provide procurement services to PTGUF for two of its on‐going projects and the procurement value for these projects is US$16.8 million. Together with PTGUF, the group expects to be able to secure more projects.
As of the end of October 2015, the Federal group has a committed order book of S$48 million, which includes the two PTGUF projects. ?The group will continue to actively pursue and bid for projects in the Southeast Asia region and in the People's Republic of China, as well as expand its product offerings,? the Federal statement said.
Editing by Reiner Simanjuntak