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Annual Report 2013
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INFORMATION TECHNOLOGY (IT) DEVELOPMENT
In order to continuously update itself on IT development, the Group has a fully integrated Enterprise Resource Planning (ERP)
system covering Financial and Distribution, Manufacturing, Fixed Assets Management and Project Management modules using
Oracle JDEdwards software. The Group has just upgraded its existing software version 8 to version 9.1 to improve its business
processes and operation efficiency.
In addition, the Group prides itself in investing in advanced detailing 3-D Computer software for perfect and accurate engineering
shop-drawings under the Drafting Section.
REMAIN COMMITTED TO OUR STRATEGIES
We remain committed to our strategy to stay focused on core competencies and improve competitiveness, extend our presence
into fabrication for the oil and gas sector, explore overseas opportunities, and diversify earnings through further expansion and
diversification into manufacturing activities related to steel.
ANCHORED TO SOLID GROWTH
During the year, we anchored the KKB Group to solid growth by securing four new projects, amounting to approximately
RM294.0 million. Under the manufacturing sector, we were awarded the contract for the Fabrication and Reconditioning of LPG
Cylinders from Petronas Dagangan Berhad and the supply of Mild Steel Pipes (Polyurethane Lined) and Pipe Specials by CMS
Infra Trading Sdn Bhd for the Proposed Construction and Completion of Tanjung Manis Water Supply Project (Phase 1) Sarawak.
Whilst under the engineering sector, we were awarded the contract for the Shop Fabrication of Steel Structures for the Proposed
Petronas LNG Train 9 Project, Bintulu, Sarawak and for the Supply and Fabrication of Steel Structures Package 3 for the SAMUR
Project, Sabah.
OPERATING FACILITIES AND ADDITIONAL CAPACITIES OF OUR FABRICATION YARD AT LOT 777
The ongoing capital works in progress for our strategic new fabrication yard at Lot 777, Block 5, Jalan Bako, Muara Tebas Land
District, Kuching, Sarawak, remains on target. To-date, five (5) covered fabrication workshops enabling heavy engineering works
to continue uninterrupted in all weather conditions, has been constructed. Construction of the two (2) load-out jetties facility to
cater for light, medium and heavy oil and gas offshores structures has been completed. Further ground improvement works on
an open yard for fit up and fabrications, measuring approximately 40 acres have also been completed. Construction of various
new facilities such as warehouse and coldroom, canteen, command center, storage areas, blasting and painting work areas have
been completed, in addition to the main office building which is ready and equipped for use by our potential client or production
sharing contractors.
In addition, the Group has invested in modern and automated equipments, heavy machineries and lifting equipments, to cater
for the fabrication requirements in the oil and gas offshore structures. As at 31 December 2013, a total sum of approximately
RM86.0 million has been invested for the expansion of our fabrication yard at Lot 777.
MANAGEMENT’S DISCUSSION & ANALYSIS (MD&A) (CONT’D)