SembCorp Industries forms two new units in utilities and engineering & construction

Singapore, Dec 28, 2000

Listed engineering services group SembCorp Industries has formed two strategic units in the areas of utilities and engineering & construction.

First, it is merging the engineering, procurement and construction (EPC) operations of SembCorp Engineering with SembCorp Construction. Both companies are wholly-owned subsidiaries of SembCorp Industries.

With this amalgamation, SembCorp Construction – previously a building and civil construction company – will be renamed SembCorp Engineers and Constructors (SembCorp E&C). The new company will be a design and build engineering service provider with core capabilities ranging from building and heavy civil engineering to industrial and process engineering.

SembCorp E&C will be the largest engineering and construction company in Asia outside Japan and Korea. It will have an order book of S$798 million and a combined staff strength of 1,280 (pls refer to Appendix 1 for organisation chart).

Following the transfer of its EPC operations, SembCorp Engineering will retain its existing build, own and operate businesses on Jurong Island – including SembCorp Utilities and Terminals, SembCorp Gas, SembCorp Cogen, SembCorp Air Products and SembCorp Propylene Purification Unit – as well as its oil and gas division which designs, builds and commissions offshore production platforms.

To better reflect its business focus, SembCorp Engineering will be renamed SembCorp Utilities. It will have seven divisions, namely: centralized utilities, gas, power generation, power supply, water, chemical feedstock, and oil and gas (pls refer to Appendix 2 for organisation structure). SembCorp Utilities will ultimately focus on its utilities and chemical feedstock businesses.

Said Mr Wong Kok Siew, Deputy Chairman and CEO of SembCorp Industries, ""The rationale of banding our engineering & construction operations together into a single unit is to have some critical mass to offer our customers a full range of capabilities and serve them better.

""The formation of our new utilities unit, on the other hand, underscores the importance of this emerging core business to SembCorp Industries.

""With SembCorp Utilities in place, we will reorganise the existing power activities within SembCorp Industries. Three companies, namely: SembCorp Energy, SembCorp Cogen and SembCorp Power – which has recently been awarded a power supply licence by the Public Utilities Board – will all come under the power generation and supply divisions of SembCorp Utilities. We will also combine the expertise of each of these companies and map out our strategy to bid for the privatized power generation plants next year.""

Senior management appointments remain unchanged with the formation of SembCorp E&C and SembCorp Utilities. Mr Paul Chain continues to head SembCorp E&C as president while Mr Tang Kin Fei is now president of SembCorp Utilities.

SembCorp Industries Organization Chart (January 2001).


Released on December 28, 2000.

For media enquiries, pls contact:

Sandy Leng
Manager, Group Corporate Relations
SembCorp Industries Ltd
DID: 3579 151
Email: sandyl@sembcorp.com.sg

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