Great potential for downstream activities

0

With the intial phase of SCORE focused on at­tracting big investors for upstream activities going forward, opportunities will gradually open up for small to medium industries as well as the downstream players to pro­vide supporting services for the major companies.

“The SCORE project will bring tremendous benefits and opportunities, not only in terms of industries, but also other spin-offs for the people,” Taib was quoted by In­side Sarawak 2011 in­vestment report.

SCORE has, as of August 31, attracted more than RM26 billion in investments from foreign and domestic companies in 14 projects. With the state government targeting RM200 billion in investments, smaller companies were in line to feed off from spin-off contracts.

The heavy and energy-in­tensive industries being estab­lished at the Samalaju Industrial Park, such as aluminium, poly­crystalline silicon and ferro-al­low products were primed to generate downstream business opportunities as well.

A planned world-class pulp and paper mill, the Bakun Dam and the Tanjung Manis Halal Hub were other examples of industries that would require support services provided by local companies.

One SME from Sarawak that had already benefited from SCORE was KKB Engineering Bhd (KKB Engineering).

It had secured an estimated RM370 million worth of con­tracts from investments in Samalaju Industrial Park.

Listed in Forbes Asia as one of its 200 ‘Best Under A Billion’ companies in Asia. KKB Engi­neering had also secured a sub-contract worth RM5.5 million for a structural steel package for Tokuyama Corp, which was building two polycrystalline silicon plants in the park valued at more than RM6 billion.

Most recently, it landed a RM70 million contract from OM Materials for the proposed earthwork package at its Sa­malaju plant.

According to media reports, KKB Engineering had been pre-qualified for Tokuyama’s proposed plant ‘Phase II’ expansion project, and OM Materials’ and Asia Minerals’s building and civil engineering packages for their porposed manganese plants.

The Tanjung Manis Halal Hub was also on track to create downstream opportunities in agriculture, aquaculture and biotechnology while timber-related industries were offered plenty of scope to process raw materials.

Among the downstream products aimed for development from timber were paper and pulp, furniture as well as plywood.

The hub was also playing a strategic role with Sarawak Timber Industry Development Corporation, Assar Refinery Services and four other companies to develop a RM300 million integrated palm oil downstream complex in the halal hub.

The agreements called for a palm oil refinery and a kernal crusher plant on 46 hectares of land. In addition to the plant, the project would result in the building of a petroleum stor­age terminal, oil and gas jetty as well as a petrochemical and oleochemical park.

SCORE was expected to cre­ate about 1.6 million new jobs by 2030, which meant universi­ties in the region were tasked with producing skilled talent to meet the requirements of the diversifying and growing economy.