26-05-2025
- Business
- Malaysian Reserve
Eversendai to sell Rawang factory
The structural steel specialist contractor plans to open a new factory in Johor to undertake its jobs in Singapore
by HABHAJAN SINGH
EVERSENDAI Corp Bhd's operations in Malaysia will be kept busy in the next few months as it plans to sell some assets — including its factory in Rawang, Selangor — and look for an alternate site in Johor, closer to its Singapore jobs.
The structural steel specialist contractor is actively undertaking the moves to trim down significantly its debt by 2031.
'Going forward, I would say the long-term debt, it will be paid off within the next six years.
'We have assets which we will dispose of in the next two to three years. Also, with the kind of business we have in hand, we will be able to progressively bring debt down and pay it off by six years. That's the target,' Eversendai executive chairman Tan Sri AK Nathan Elumalay told The Malaysian Reserve (TMR).
Its total group borrowings and debt securities for the financial year ended Dec 31, 2024 (FY24), stood at RM576.7 million, a significant reduction from RM1.05 billion as at the end of FY23.
Its gearing level has been cited as a concern weighing on the minds of investors, causing some of them to shy away from the company which was listed on the Main Market of Bursa Malaysia in July 2011.
The disposal of two parcels of freehold land in Sungai Buloh, announced in January 2025, raised RM63 million, which was used to reduce the group's borrowings.
In an exchange filing, Eversendai said the group's Ijarah facility drawdown for its first lift boat, Vahana Aryan, was fully settled by Vahana Offshore (M) Sdn Bhd. The company also settled other term loans during the year, resulting in a 45.2% reduction of its total borrowings.
The company was in the process of further restructuring its borrowings to strengthen its liquidity position, it added.
We are in the process of setting up a factory in Johor. We could potentially achieve 100% utilisation capacity for Malaysia, says Nathan (pic: TMR)
Nathan said the company next plans to dispose of its land in Kundang and its factory in Rawang, both located in Selangor.
More than a decade ago, Eversendai expanded its Rawang plant facility to accommodate increasing operational needs from local projects.
In an announcement in September 2013, the company said it planned to purchase land in Bandar Kundang, as the Rawang facility lacked sufficient space for the storing the company's tools and equipment.
When asked why Eversendai plans to divest its Rawang factory, Nathan said it is currently underutilised, as most of the projects from Singapore are relatively small in scale.
'We are in the process of setting up a factory in Johor. It may not be as big as the Rawang facility, but it will be adequately sized to cater to Singapore projects.
'In that way, we could potentially achieve 100% utilisation capacity for Malaysia,' he said.
When asked to provide more details about the land the company is seeking in Johor, he said it is expected be about eight to 10 acres (4.05ha).
On May 20, Eversendai announced that it had secured a project for the construction of the New Science Centre in Singapore.
The composite building comprises trusses, columns and beams from Level 2 to roof. The scope of work for this project includes engineering, connection design, shop drawings, steel material supply, fabrication, delivery and erection of structural steel works.
The company conducts significant business in the Middle East, India and Singapore, in that order, with a smaller presence in Malaysia.
For FY24, Eversendai saw its net profit drop 47% to RM14.1 million, on a turnover of RM1.24 billion, down 15% from the previous year. This marked its second year in the black after a tough spell during Covid-19. The company was in the red for FY20, FY21 and FY22.
Eversendai operates seven steel fabrication facilities located in Malaysia, Singapore, Dubai, Sharjah, Ras Al Khaimah, Qatar and India, with an annual capacity exceeding 200,000 tonnes.
It is from these steel fabrication facilities that the company has left an indelible mark on some of the world's most iconic landmark structures. These include the Burj Khalifa in Dubai, Petronas Tower 2 (Malaysia), Khalifa Olympic Stadium (Qatar), Kingdom Centre (Saudi Arabia) and Republic Plaza (Singapore).
Eversendai shares closed at 54.5 sen on May 22, with a 52-week high/low of 77 sen/ 34 sen.
This article first appeared in The Malaysian Reserve weekly print edition
