KUALA LUMPUR: Wah Seong Corporation Bhd is tapping into another vast business opportunity through the subsidiaries of South Korea’s Doosan Group to distribute construction equipment in Sabah and Sarawak.
Wah Seong’s indirect subsidiary, WDG Resources Sdn Bhd entered into a distributorship agreement with Doosan Infracore Co Ltd yesterday to secure the exclusive distributorship rights to participate in infrastructure and construction projects in Sabah and Sarawak, including the Pan Borneo Highway.
In June 2017, WDG was appointed as the exclusive distributor of Doosan’s range of equipment, including excavators, wheel loaders and articulated dump trucks within Peninsular Malaysia.
WDG Resources vice-president/director Danny Ang said the extension of the Doosan distributorship would help double the company’s sales.
“WDG is confident of riding on our excellent track record to break new grounds in Sabah and Sarawak,” he told reporters at the exclusive distributorship agreement signing ceremony, here yesterday.
Wah Seong industrial trading and services division chief executive officer Goh Eng Hooi said for the latest agreement, WDG aims to capture around 10 per cent market share for Doosan’s equipment by 2020.
“Previously, we managed to build a portfolio with a 10 per cent market share of the Peninsular Malaysia.
“For the Sabah portion of the Pan Borneo Highway, there are still 12 packages left that we can focus on, while in Sarawak, there is a coastal highway project (which is in the offing) and the ongoing Pan-Borneo Highway. There are also dam projects coming up as well,” Goh said.
The distributorship is expected to contribute positively to the earnings of the group over the two-year agreement.
WDG will set up its main branches in Kuching and Kota Kinabalu by year-end.
Meanwhile, Doosan sales and marketing vice president Chris Jeong Kwan Hee said by having a single entity as the exclusive distributor for both Peninsular and Sabah and Sarawak, the group hopes to provide better after sales service for its end-customers.
“WDG has a similar portfolio with the Doosan Group, which is the oil and gas and heavy industry sectors, and this provides a good synergy for us to develop this market.
“With good customer relationships, we believe that we can reach our goal of improving our market presence in Malaysia,” he said.
Jeong said WDG has proven its capabilities of achieving a 10 per cent market share in Peninsular Malaysia for the last two years, hence, it is confident of its forays into Sabah and Sarawak. –Bernama
