KUCHING: Industrial gas manufacturer B.I.G. Industries Bhd (BIG) will set up a new branch in Samalaju Industrial Park (SIP) in Bintulu to better serve the industries there.
The new branch will be constructed in phases, starting with the refilling station for carbon dioxide and depot for cylinder storage.
“We have obtained approval for Phase 1 planning development and the building & structural plan, and are preparing for commencement of site works.
“This branch will incorporate solar panels to power the office, operations area and perimeter lighting and rain water harvesting for the toilets and operations,” BIG said in its newly released 2023 annual report.
The company said the increased demand for industrial gas and services in financial year ended June 30, 2023 (FY2023) was catalyst to push forward for the segment’s growth plan, adding that the new branch will better serve the existing, new and prospective customers in SIP and neighbouring areas.
“SIP is designed as a hub for energy-intensive industries to invest in Sarawak as Sarawak’s renewable energy has long been recognised as a major asset. The abundance of inexpensive, clean renewable hydroelectric power is a key competitive advantage, especially for energy-hungry industrial plants for primary aluminium production, ferroalloy smelting,
polycrystalline silicon production and epichlorohydrin (ECH) production.”
In FY2023, BIG’s industrial gas segment recorded higher revenue of about RM24.2 million (FY2022: RM22.2 million), driving its pre-tax profit higher to RM1.57 million (RM0.97 million). The segment’s key customers are from the fabrication & shipbuilding, oil, gas and petrochemical as well as food & beverage sectors.
In FY2023, the segment’s cylinder and liquid sales climbed by 13 per cent and three per cent respectively from FY2022.
“The sales growth moved our production output closer to scale, lowering the production unit cost. Such improved economies of scale supported the growth in profit before taxation in FY2023.
“Our notable contracts completed this year were for supply and delivery of liquid nitrogen to Malaysia LNG Sdn Bhd and Air Liquide Malaysia Sdn Bhd; liquid oxygen to Air Liquide Malaysia Sdn Bhd, Suri Seri Begawan Hospital in Kuala Belait, Brunei Darussalam; industrial gases to Press Metal Group, Sarawak Slipways Sdn Bhd, Woodman Kuala Baram Estate Sdn Bhd and CHEC Construction (M) Sdn Bhd,” added BIG.
Established in 1982 in Miri, BIG is the pioneer industrial gas operator in Sarawak, with manufacturing plants with
refilling facilities located in Kuching, Bintulu and Miri and refilling facilities in Labuan, Sandakan and Lumut.
During the financial year under review, the company closed down the loss-making depots in Pasir Gudang and Sibu. On June 13, 2023, the company entered into a conditional sales and purchase agreement to dispose the land and buildings of the Pasir Gudang branch for RM4.5 million.
Besides industrial gas business, BIG is into property development and ready-mix concrete business.
The group’s on-going property development called Suasana Melalin @ Kota Kinabalu comprises 71 units of double-storey terrace houses, six units of double storey semi-detached houses and one unit of double-storey bungalow lot with an estimated gross development value (GDV) of RM37 million.
According to BIG, the focus in FY2023 was to obtain the occupation certificate for Phase 1 and pushing the sales for Phase 2 of the Suasana Melalin @ Kota Kinabalu development. The property for Phase 2 is about 42 per cent as at August 2023, and traditionally, the sales pick up as the works at site progresses.
“Our upcoming project is an industrial development know as Terra 12 @ Bintulu, comprising of 12 units of terrace industrial buildings. The development plan was submitted to the Bintulu Development Authority in April 2023 and we are actively following up on the progress.
“We are also actively looking to acquire land with development potential for this division.”
On the group’s concrete segment which supplies ready mixed concrete to construction sites in the vicinity of its batching plant in Sabah and to Suasana Melalin project, BIG said the segment’s sales grew 31 per cent in FY2023 from a year ago, thus enabling production to move closer to scale and lowering the production unit cost. This improved efficiency had resulted in the segment to reduce its pre-tax loss to RM0.16 million from RM0.66 million in FY2022 as revenue expanded to RM8.2 million from RM6.25 million.
BIG chairman Datuk Lee Chuen Wan said in FY2023, the group’s industrial gas and concrete segments grew with the increased economic activities in Sarawak and Sabah.
“The federal and state infrastructure projects and industrial parks stimulated investment-led growth leveraging on abundant clean renewable energy (hydroelectric power) and natural resources for energy-intensive industries in Sarawak,” he added.
On prospects for the new financial year, Lee said the group’s major operations are in Sabah and Sarawak where the state is ploughing more resources into the development of its renewable energy sector to achieve the goal of becoming a high-income economy by 2030.
In FY2023, BIG posted lower after-tax profit of RM2.68 million (FY2022: RM3.7 million) as revenue shrank to RM37.2 million (RM39.7 million), with earnings per share of 4.22 sen (6.35 sen).
