KNM targets to be in world's top-10

21-Nov-05

The global market for oil and gas, and petrochemicals is estimated to be worth US$20bil and is dominated by the Korean, Japanese and European companies, which collectively control 70% of the market. In line with its vision to be among the top-10 global process equipment companies within five years, the KNM Group Bhd aims to capture 3% of the market for oil and gas, and petrochemicals over the next five years from the present 0.5%. To meet this vision, company strategies included capacity building, improvement in product lines and penetrating new markets. KNM manufactures process equipment for two other sectors - oil and gas, and petrochemicals. Its products are the main equipment to ensure proper functioning of the oil and gas-processing facilities, platforms, plants, refineries and petrochemical plants. The company's export markets, which contributed 74% of the group's total turnover in the last financial year, comprised North America, South America, Europe, Africa, West Asia, East Asia and Oceania. While the Middle East and China are currently, the company's two biggest oil and gas markets, Latin America, particularly Brazil, also offers potential over the next five years. Brazil's national oil company, Petrobras, is anticipated to invest about US$56bil in oil and gas projects from 2006 to 2010, which gives an average of US$11bil a year. The petrochemical sector is also currently on the up-cycle, spurred by demand in China and India. Several petrochemical projects are in the pipeline over the next five years in the Middle East and China.