Monday, September 19, 2011

Sime Darby Industrial's RM3b order book

PETALING JAYA:'' With an order book of RM3 billion, Sime Darby Industrial Sdn Bhd is expected to remain busy for the next three years, says executive vice-president Scott William Cameron.

Besides Malaysia and Brunei, Sime Darby Industrial has a presence in Australia, China, Papua New Guinea, Singapore, Hong Kong and Macau.

The company is mostly involved in distributing Caterpillar heavy machinery for the mining, CONSTRUCTION [], forestry, power systems, marine and quarry
sectors of these countries.

Speaking at a press conference at the Tractors Engineering Complex in Puchong on Monday, Sept 19, Scott was confident the division would contribute positively to the group's bottomline in the coming years.

In the financial year ended June 30, 2011, the division registered operating profit of RM1.1 billion, on the back of RM10.3 billion in revenue, accounting
for 18 per cent of Sime Darby Group's bottom line.

Looking ahead, Scott said the Australian and China markets were robust and presented further growth potential for Caterpillar, especially in the mining

"We aim to ride on the mining boom with Queensland's coal industry set to double and with the enormous potential in Xinjiang, China," he added.

In view of this, Scott said the division would allocate some RM47 million, annually, to train between 400 and 600 skilled personnel for the next decade.

He added that Sime Darby Industrial had also set up caterpillar certified campuses throughout the region offering courses on heavy equipment maintenance, repair and service.

Touching on Caterpillar's acquisition of Bucyrus International Incorporated, Scott said it would extend the range of products to cover both surface and
underground mining equipment which would greatly benefit the mining industry.

"With the addition of Bucyrus products, Caterpillar's addressable market will grow to 75 per cent from 23 per cent at present," he said.

These products include walking draglines, electric rope shovel, rotary blast hole drill and continuous miner, he added.

Caterpillar dealership operations account for over 90 per cent of the division's profits.

The partnership between Caterpillar and Sime Darby is a long-standing relationship that goes back to 1929.

Today, Sime Darby Industrial is among Caterpillar's top five dealership in the world.

Meanwhile, Sime Darby Industrial's Managing Director K.C. Chong said'' locally, the division expected to receive orders for machinery beginning the
second quarter of next year.

"It (orders) will be from mass construction work to build the My Rapid Transit (MRT) project," he said, but declined to reveal any numbers. - Bernama

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