Saturday, June 12, 2010

Wah Seong eyes jobs in Europe, Golden Triangle

GEORGE TOWN: Wah Seong Corp Bhd plans to establish an oil and gas pipe-coating plant in Europe or in the Golden Triangle (Brazil, Mexico, and North Africa) region in the next one to two years.

Group deputy managing director Giancarlo Maccagno said after the company AGM that the project would support the group’s interests in these areas. “We are in the process of bidding for a couple of projects in Europe and the Golden Triangle,” he said.

Over the next five years, the oil and gas industry planned to spend about US$170bil for deepsea exploration and production, of which 75% would be for the Golden Triangle, said Maccagno.

“There are opportunities for our gas pipe-coating business in North Africa. These pipes will be used for bringing gas to Europe,” he said.

In Brazil and Mexico, the business opportunities are in oil exploration projects,” he said.

On Wah Seong not getting the Socotherm deal, Maccagno said the Socotherm had wanted the Wah Seong to assume responsibility for its liabilities.

“This would have put our group at risk. Our 50 million euro bid for Socotherm was the preferred offer, but we could not agree to assuming its liabilities,” he said.

Socotherm had filed for protection from creditors last August. It had made a net loss of 74 million euros and debts of 250 million euros.

Last October, Wah Seong bought out Socotherm’s 32.5% stake in PPSC Industrial Holdings Sdn Bhd for RM76mil to raise its stake to 100%.

Socotherm has been Wah Seong’s partner in PPSC for the past 19 years.

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