Boustead Heavy Industries Corporation Berhad, (myx: 8133) often abbreviated as BHIC is a Malaysian industrial group specialised in defence, naval and commercial shipbuilding, ship repair, fabrication of offshore structures as well as maintenance, repair and overhaul of aircraft. The company is a public limited company and the largest shareholder is Armed Forces Fund Board, a government statutory body which provides retirement benefits and a savings scheme for officers of the Malaysian Armed Forces, with a 58.69% stake. The second largest shareholder is Retirement Fund (Incorporated), a company created by the Malaysian Government as an investment company, with a stake of 7.17%.[4]
History
Boustead Heavy Industries Corporation (BHIC) was listed on Bursa Malaysia in 2007 and the parent company is Boustead Holdings. BHIC was known for its subsidiary Boustead Naval Shipyard (BNS) which is specialised in naval shipbuilding and ship repair.[5] BNS now had taken over by Government and renamed as Lumut Naval Shipyard (LUNAS).
Take over of PSC-Naval Dockyard
Background
Penang Shipbuilding and Construction - Naval Dockyard Sdn Bhd (PSC-ND), was a division of the Penang Shipbuilding and Construction Industries Bhd (PCSI), a Malaysian Government-Linked Company (GLC), based in Lumut, Perak, Malaysia. The company's primary role was to maintain the Royal Malaysian Navy (RMN) fleet and the Lumut Naval Dockyard.
PSC - Naval Dockyard was born out of the Royal Malaysian Navy's dockyard facilities which was built to provide ship repairs and maintenance services. Under the corporatisation program advocated by the Malaysian Government, the dockyard was corporatised as Limbungan TLDM, a wholly owned government company. It had modern facilities to meet the total maintenance requirements of the Royal Malaysian Navy fleet, from hull repairs to major overhauls and from radar refitting to weapon systems refurbishment.
The company was taken over by the public listed Penang Shipbuilding Corporation Berhad, a company in the stable of the now bankrupt Amin Shah Omar Shah, and renamed PSC - Naval Dockyard Sdn Bhd to reflect the corporate relationship with Penang Shipbuilding Corporation.
In 2005, Public Accounts Committee (PAC) unveiled serious corruption in the PSC-ND and caused solemn concern from the public. Under pressure of the public, Malaysian government enforced a reorganization resulting in the forming of Boustead Heavy Industries.[6]
Facilities and capabilities
Defence related businesses
Electronics division
Boustead Heavy Industries Corporation's electronics division started as an in-house repair and maintenance for the Royal Malaysian Navy fleet and has now evolved into an independent business centre which offers service to both government and private sectors. It is a one stop centre providing service, maintenance, repair and complete overhaul of naval and ground electronic equipments and systems, located at Lumut, Malaysia. It has been appointed as the Malaysian Service Centre for SAAB 9LV212 Weapon Control System and EADS / Hensoldt TRS-3D and TRML-3D Surveillance Radar used by the Malaysian Armed Forces.
Weaponry division
Boustead Heavy Industries Corporation weaponry division such as BHIC Allied Defence Technology Sdn Bhd, BHIC Defence Techservices Sdn Bhd, BHIC Marine Technology Academy Sdn Bhd, BHIC Bofors Asia Sdn Bhd, BHIC Navaltech Sdn Bhd and BHIC MSM Sdn Bhd offers services like repair, refurbishment and upgrade of terrestrial and naval weapon systems. It is also capable of refurbishment of armoured vehicles and various types of weapon system including decoy systems, torpedo systems, missiles and installing firing systems.
Products
SGPV Program
In 2011, Boustead Naval Shipyard was awarded a RM9 billion (US$2.8 billion) contract for the construction of 6 Second Generation Patrol Vessels also known as Maharaja Lela-class frigate for the Royal Malaysian Navy. Boustead Heavy Industries will design the ship with DCNS acting as the design authority and build all 6 ships entirely in Lumut, Malaysia. This represented the largest contract for the company since formation. The contract for the ships included intellectual property rights and technology transfer. The shipyard will undergo a major upgrade to accommodate the construction of the ships.
At DSA 2014, the program manager Mr Anuar replied to an interview saying that "The program is progressing rather well, with some parts already in critical design review" and "We expect the first ship to be finished by 2017 or early 2018".[19] He also commented that the ships are "full fledged frigates and in my opinion, will be a huge deterrent for the Royal Malaysian Navy."
Various subcontracts like the Thales CAPTAS-2 Towed array sonar
Notable contracts
- In 2011, Boustead Naval Shipyard was awarded a RM9 billion (US$2.8 billion) contract for the construction of 6 Second Generation Patrol Vessels, representing the biggest contract ever awarded to Boustead Heavy Industries.
- In Dec 2011, an agreement between Contraves Advanced Devices Sdn Bhd and Rheinmetall Defence Electronics Gmbh was signed for the manufacture and supply of Cargo Loading System Assemblies for the Airbus A400M, Airbus A380, Airbus A330 aircraft during LIMA 2011.
- In February 2012, Contraves Advanced Devices was awarded an initial contract by Raytheon Company for the production and supply of components for the Evolved Sea Sparrow Missile (ESSM). This is the first contract of its type awarded to a Malaysian company. Raytheon qualified Contraves Advanced Devices Sdn. Bhd. as a participant in the Strategic Enterprise Aligned Commodities provider program and as a Raytheon preferred supplier.
- In March 2014, BHIC AeroServices was awarded a RM220 million contract for the maintenance and supply of spare parts for the Royal Malaysian Air Force's Eurocopter EC725 helicopters.
- In March 2014, Boustead Penang Shipyard was awarded a RM108 million contract for the provision of engineering, procurement, construction and commissioning of offshore topsides for Block SK309 Belum Satellite-A Platform, in phase two of the Sarawak Gas Development Project[22]
External links
References
- The Edge Market - Boustead Heavy Industries appoints Feroz Razi as new CEO^
- Annual Report 2013 Boustead.com.my, retrieved 11 October 2014^
- Group Structure of BHIC^