Zicom completes acqusition in Indonesia

Australia, Singapore-based machinery producer Zicom Group has acquiered a majority interest in PT Putra Dharma Harmoteknik (PDH) through its Singapore based wholly owned subsidiary Zicom Equipment Pte Ltd (ZEPL) for US$300,000, the firm said in a statement on Wednesday.

PDH, first incorporated in 1994 in Jakarta, is wholly owned by Indonesians and has been principally involved in activities relating to the energy sector. It holds a MIGAS licence from the Ministry of Energy and Mineral Resources allowing it as a licensed EPC (Engineering, Procurement and Construction) supplier/contractor to carry out turn-key projects in the oil and gas sector, the firm said.

However due to limited resources, it has been unable to participate fully in the oil and gas potentials in Indonesia.

In recent months with the assistance and support of ZEPL, PDH has evolved into a credible engineering company that is capable to undertake turn-key process plants in Indonesia as well as to assist ZEPL in engineering support for its projects outside of Indonesia.

ZEPL was restructured into an EPC company 24 months ago. It has to date secured confirmed orders for 6 turn-key projects totalling US$29 million for delivery in the financial years 2011 and 2012. All these projects are based outside of Indonesia. With the acquisition of PDH, ZEPL is able to support PDH to participate directly in turn-key projects in the oil and gas sector in Indonesia in the near future.

"We expect the acquisition to be accretive in the medium to long term future," the company said, adding the acquisition is fully funded by its internal resources. (romel/kanti)