Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 16 CHAIRMAN’S MESSAGE (CONT’D) During the year, we started the construction of our new workshop in Pengerang, Johor to support the Petronas Refinery and Petrochemical Integrated Development and Pengerang Integrated Complex. This workshop was completed in early 2022 and will be our main thrust for the coming year where we will maximise our new assets, expand human capital investment and capabilities further to drive better performance and revenue across our operating units. We will continue with selective capital investments, identify strategic partners and bring other supplementary technical capabilities such as mechanical seals and valves services and minor fabrication to this new workshop. We will continue to fine tune our business plan and extend joint tendering with selective partners to capture long term integrated service contracts and further expand our market base. Our aim is to be the best, most reliable and efficient one-stop service centre to the oil & gas industry, covering all aspects of customer maintenance needs, EPCC and turnaround supports. Frontken (Singapore) Pte Ltd (FSPL Plant 1), Singapore - Our engineering business in Singapore was still largely affected by the permanent shutdowns of processing plants by oil & gas customers due to the on-going pandemic where some projects that we anticipated were cancelled in beginning of the year. The manpower shortages faced by refineries and processing plants resulted in lower scale maintenance shutdowns and reduced amount of works during these periods. However, we saw a gradual increase in activities during the second half of 2021 from across all sectors including oil & gas, petrochemical and refineries. As a result, losses for this unit were significantly narrowed compared to the year before. We saw some of our customers which have been inactive for most of 2021 sending in enquires towards the end of the year, some of which have been converted to orders in early January 2022. The significantly lower cost base and better utilisation of our resources from the operational changes made two years ago helped improve our earnings as well. Our workshop personnel were cross trained to undertake various tasks such as blasting, masking, coating, plating and spraying to enhance production efficiency and to cope during the busy period. With the closure of one of our customers’ plant in US, Carrington in the first quarter of 2021 and their relocation to Singapore, we saw an increased activity for newproducts and that this demand will continue in the coming year. In addition, the petrochemical and refinery complexes in Jurong Island have announced shutdown plans for the first half of 2022 and we are expecting to see repair works for regular pump component and rotor inspection in the pipeline. We are also collaborating with a new customer to provide spare parts, complete component management, rotor inspection and repair services. Moving forward, we will continue to engage and seek new opportunities from our existing customers and from non-traditional industries such as consumer product and solar energy manufacturers, where we have expanded our services to welding repairs and fabrication of parts in 2021. Aerial view of our New Workshop at Pengerang, Johor in December 2021
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