KUALA LUMPUR: Ni Hsin Resources Bhd is investing RM10 million in Satumarin Sdn Bhd as it diversifies into the marine and oil & gas business.
In a statement yesterday, Ni Hsin said it had agreed to buy 49 per cent in Satumarin for RM735,000.
Upon the successful transfer of shares to Ni Hsin, Ni Hsin would subscribe for up to 9.27 million redeemable preference shares for RM9.27 million cash in Satumarin within five years.
Satumarin provides professional offshore marine services and logistics support, project management and marine technical consultancy services in the oil & gas industry.
The bumiputra company holds the license to supply product/service to exploration and oil/gas companies in Malaysia issued by national oil company Petroliam Nasional Bhd (Petronas).
Ni Hsin group chairman Sofiyan Yahya said this venture opens up new opportunities for Ni Hsin to expand into the marine and oil & gas sectors.
“Ni Hsin is already familiar with the global market, and hence will further enhance Satumarin’s global aspirations.
"Satumarin is also evolving and expanding into new specialised services as a result of their extensive experience and expertise providing a range of marine services for the marine and oil & gas sectors.
“With this new partnership, we can ensure the success of Satumarin’s goal to be the leading marine specialist player in the region,” he said in a statement.
Satumarin managing director Captain Mohd Zailani Abdul Razak with Ni Hsin's investment, Satumarin will have a more solid base to further expand its market share in its existing services and venture into new market sectors, such as the Marine Warranty Survey.
He explained marine Warranty Survey is an essential service to reduce the risk of loss or damage in high value marine construction and transportation projects.
"We intend to establish, manage and operate a new arm for this with 100 per cent local manpower expertise,” Zailani added.
Ni Hsin manufactures premium stainless steel multi-ply cookware in Asia. It is also the exclusive distributor for the Japanese Wonder chef cookware in Asean.
On an industrial scale, Ni Hsin design and make stainless steel convex mirrors and stainless steel household water filtration systems.