Malaysia Marine and Heavy Engineering
Malaysian marine, offshore construction, conversion and heavy engineering services provider
Last updated August 26, 2026
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Overview
Malaysia Marine and Heavy Engineering, commonly known as MMHE and also associated with the listed holding company Malaysia Marine and Heavy Engineering Holdings Berhad, is a Malaysian shipbuilding, offshore construction and heavy engineering business. Its operations are centered on large fabrication and marine facilities in Pasir Gudang, Johor, together with corporate activities in Kuala Lumpur. The company has long served the oil and gas industry and has developed capabilities covering engineering, procurement, construction, installation, hook-up and commissioning, offshore structure fabrication, floating production conversion, marine repair and dry docking. The operating history of the business reaches back to May 1973, when Malaysia Shipyard and Engineering Sdn Bhd was established by the Malaysian government as part of the country’s maritime industrialisation programme. The business was later privatised and became a wholly owned subsidiary of MISC Berhad in 2006. The holding company was incorporated in 1989 as MSE Holdings Sdn Bhd. In March 2004, MISC increased its interest in MMHE to 65 percent, making it the majority shareholder. In June 2010, MSE Holdings became a public company and adopted the name Malaysia Marine and Heavy Engineering Holdings Berhad. MHB was listed on Bursa Malaysia’s Main Market on 29 October 2010. Its initial public offering raised RM2.03 billion, according to the company history described in the Wikipedia reference. The offering was notable in Malaysia for involving an international strategic investor, Technip S.A. of France, an engineering and construction company active in the oil and gas sector. MMHE’s project record includes major deepwater and floating production facilities. In September 2006, it completed the FPSO Kikeh and the Kikeh Spar for the Kikeh field. The project was described as Malaysia’s first deepwater development, with the FPSO being the first deepwater FPSO in Malaysia and the spar being the first installed outside the Gulf of Mexico. In 2007, the group expanded internationally by operating and managing the Kiyanly fabrication yard in Turkmenistan on behalf of PETRONAS Carigali (Turkmenistan) Sdn Bhd. The company completed the Gumusut-Kakap semi-floating production system in 2013. The facility left the MMHE West yard on 13 May 2013 and was described in the reference material as the world’s largest semi-floating production facility to have been fully built and integrated on land. MMHE’s two Pasir Gudang yards have supported the company’s role in deepwater fabrication and marine engineering. A 2012 yard optimisation initiative added land and substantially expanded fabrication capacity, with the original Jalan Pekeliling facility renamed MMHE West and the acquired facility designated MMHE East. MMHE’s business scope includes construction of production topsides, process modules, turrets, floating production systems, mooring buoy systems and mobile offshore storage units. Its conversion business transforms vessels and offshore units into FPSOs, FSOs, mobile offshore production units, mobile offshore drilling units and floating storage units. Marine services include repair, refurbishment and refit of LNG carriers, tankers, gas carriers, offshore support vessels, drilling rigs and other energy-related vessels, as well as new-build structures and complex vessel-lengthening, or jumboisation, work. The company has worked with international technology and engineering partners including Samsung Heavy Industries, Technip and ATB Riva. These relationships have been used to broaden engineering, fabrication and project-delivery capabilities. MMHE is positioned as a regional heavy engineering and deepwater support provider, with a particular concentration on energy infrastructure, offshore structures, floating production systems, marine conversion and higher-value repair work.
History
Malaysia Marine and Heavy Engineering’s industrial roots lie in Malaysia’s state-supported maritime development programme. Malaysia Shipyard and Engineering Sdn Bhd was established in May 1973 to help develop domestic shipbuilding and marine engineering capabilities. The business was subsequently privatised and later became part of the MISC corporate group. The holding-company structure was incorporated in 1989 under the name MSE Holdings Sdn Bhd. MISC became increasingly influential in the business during the 2000s. In March 2004, it raised its shareholding in MMHE to 65 percent, becoming the majority shareholder. In 2006, the operating company became a wholly owned subsidiary of MISC Berhad. This ownership relationship linked MMHE’s fabrication and engineering capabilities with a major Malaysian shipping and energy-services group. A defining early project was the Kikeh development. In September 2006, MMHE completed the FPSO Kikeh and the Kikeh Spar. The project was significant for Malaysia because it represented the country’s first deepwater project. The FPSO was identified as Malaysia’s first deepwater FPSO, while the spar was described as the first of its type to be installed outside the Gulf of Mexico. The project helped establish MMHE as a builder of complex offshore facilities rather than only a conventional shipyard. The company also began developing an international presence. In 2007, the group undertook operation and management of the Kiyanly fabrication yard in Turkmenistan for PETRONAS Carigali (Turkmenistan) Sdn Bhd. This expanded MMHE’s experience beyond its Malaysian yards and supported its participation in regional oil and gas infrastructure work. The corporate holding company changed its legal identity as it prepared for public-market development. In June 2010, MSE Holdings was converted into a public company and renamed Malaysia Marine and Heavy Engineering Holdings Berhad. On 29 October 2010, MHB was listed on the Main Market of Bursa Malaysia Securities Berhad. Its initial public offering raised RM2.03 billion. The offering was notable because it included Technip S.A. of France as an international strategic investor, combining Malaysian industrial ownership with an overseas engineering relationship. Capacity expansion followed the listing. In April 2012, MHB began operating the MMHE East yard after acquiring additional land for offshore oil and gas structures and EPCIC work. The existing Jalan Pekeliling facility became MMHE West, while the new facility was named MMHE East. The expansion increased the company’s stated Pasir Gudang yard capacity from 69,700 metric tonnes to 129,700 metric tonnes and positioned the combined complex as Malaysia’s largest fabricator by yard size and capacity in the reference period. MMHE’s project portfolio continued to move toward large and technically demanding offshore facilities. The Gumusut-Kakap semi-floating production system was completed and left MMHE West on 13 May 2013. The facility was described as the world’s largest semi-floating production system to have been fully built and integrated on land. The project reinforced MMHE’s reputation in deepwater fabrication and offshore production infrastructure. The company’s business has developed around three connected areas. Offshore construction provides engineering, procurement, fabrication, installation, hook-up and commissioning for topsides, process modules, turrets, floating production systems, mooring systems and mobile offshore storage units. Offshore conversion covers the transformation of tankers, offshore rigs and other vessels into FPSOs, FSOs, mobile production units, mobile drilling units and floating storage units. Marine repair focuses on complex repair, refit and refurbishment for LNG carriers, oil and gas tankers, offshore drilling rigs, gas carriers and support vessels, alongside new-build structures and jumboisation work. MMHE has also built partnerships with Samsung Heavy Industries, Technip and ATB Riva. These collaborations have supported technology transfer and broader project capabilities. Its principal physical base remains the Pasir Gudang fabrication complex, comprising MMHE West and MMHE East, while its corporate office is associated with Kuala Lumpur. The company is positioned as a Malaysian and regional provider of heavy engineering, deepwater offshore support, marine conversion and high-value repair services.
- 2013
Gumusut-Kakap production system departs the yard
[1]The Gumusut-Kakap semi-floating production system left MMHE West on 13 May after onshore construction and integration.
- 2012
MMHE East becomes operational
[1]The yard optimisation programme added MMHE East and expanded the Pasir Gudang fabrication footprint.
- 2010
MHB is listed on Bursa Malaysia
[1]The renamed Malaysia Marine and Heavy Engineering Holdings Berhad was listed on the Bursa Malaysia Main Market on 29 October.
- 2007
International yard management begins in Turkmenistan
[1]MHB began operating and managing the Kiyanly fabrication yard in Turkmenistan.
- 2006
Kikeh deepwater project is completed
[1]MMHE completed the FPSO Kikeh and Kikeh Spar for Malaysia’s first deepwater project.
- 2004
MISC becomes majority shareholder
[1]MISC increased its shareholding in MMHE to 65 percent.
- 1989
MSE Holdings is incorporated
[1]The holding-company predecessor of MHB was incorporated as MSE Holdings Sdn Bhd.
- 1973
Malaysia Shipyard and Engineering is established
[1]Malaysia Shipyard and Engineering Sdn Bhd was established by the Malaysian government to support national maritime industrialisation.
Products and positioning
A Malaysian and regional heavy engineering partner for offshore energy infrastructure, floating production conversion, deepwater fabrication and complex marine repair.
Offshore engineering
Offshore construction and EPCIC
MMHE provides integrated engineering, procurement, construction, installation, hook-up and commissioning services for offshore and onshore oil and gas developments. The work can include production topsides, process modules, turrets, floating production systems, mooring buoy systems and mobile offshore storage units. Its fabrication yards are designed for large structures and complex project integration.
Offshore conversion
FPSO and FSO conversion
The company converts existing vessels and offshore units into floating production, storage and offloading units, floating storage and offloading units, mobile offshore production units, mobile offshore drilling units and floating storage units. Services extend from engineering design and fabrication through installation, commissioning and integration. The MMHE West yard has completed FPSO and FSO conversion projects.
Marine services
Marine repair and refurbishment
MMHE undertakes repair, refit and refurbishment of energy-related vessels and offshore equipment. Target assets include LNG carriers, ultra-large and very large crude carriers, petroleum and chemical tankers, gas carriers, offshore drilling rigs and support vessels. The business also includes new-build marine structures and jumboisation, an engineering process that increases a vessel’s length or capacity.
Heavy engineering
Deepwater fabrication
The Pasir Gudang yards fabricate and integrate major deepwater production structures. Notable projects include the Kikeh FPSO and spar and the Gumusut-Kakap semi-floating production system. This capability places MMHE within the specialist offshore fabrication segment serving international oil and gas operators and engineering contractors.
Brand decisions
2012
Yard optimisation and capacity expansionStrategyBackground
MHB sought additional capacity for offshore oil and gas structures and EPCIC projects.
Action taken
The company acquired additional land, began operating MMHE East and renamed the existing facility MMHE West.
Aftermath
The combined Pasir Gudang complex increased its stated annual fabrication capacity from 69,700 metric tonnes to 129,700 metric tonnes.
2010
MHB proceeds with public listingOtherBackground
The holding company was converted into a public company and renamed as part of its capital-market development.
Action taken
MHB listed on Bursa Malaysia’s Main Market on 29 October 2010 through an IPO.
Aftermath
The IPO raised RM2.03 billion and included Technip S.A. as an international strategic investor.
IPO proceeds. RM2.03 billion (29 October 2010 IPO)
2004
MISC increases its MMHE stakeM&ABackground
MISC’s increased ownership strengthened the connection between Malaysia’s shipping group and its marine fabrication and engineering business.
Action taken
MISC raised its shareholding in MMHE to 65 percent and became the majority shareholder.
Aftermath
MMHE subsequently operated as part of the MISC group, enabling closer alignment between shipping, energy and heavy engineering capabilities.
Recent events
EA Technique and MHB settle FSO conversion contract dispute[2]
EA Technique and Malaysia Marine and Heavy Engineering (MHB) executed a settlement agreement over their dispute concerning a 2015 floating storage and offloading vessel conversion project. MHB accepted US$25.5 million as full and final settlement; the parties agreed to settle without admission of liability.
Sources2 sources
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