By Rupinder Singh, Business Times
Date: 9th December 2003

PROTASCO Bhd’s wholly-owned subsidiary HCM Engineering expects its book order to hit RM1 billion by June next year.

HCM Engineering managing director Datuk Hasnur Rabiain Ismail said this will be contributed by local projects alone.

“We hope to increase our order book next year by securing more jobs domestically,” he told reporters after the company was awarded the ISO9001:2000 certificate yesterday.

Last Thursday, HCM Engineering and Molek Engineering Sdn Bhd received a letter of intent from the Public Works Department to rehabilitate and upgrade roads of up to 120 km in length from Alor Star to Sik, Kedah.

The project will be undertaken by a joint venture called HCM-Molek JV Sdn Bhd, of which HCM will have a 80 per cent interest.

“We hope to commence work in May or June next year for a duration of 30 to 36 months,” said Hasnur. The contract will not exceed RM400 million.

HCM recently secured a 15-year contract to maintain 373.1km of federal roads in Sarawak. The contract is expected to generate an additional turnover of RM15 million a year to the company.

Under the privatization agreement signed by HCM Engineering and the Government, the company will undertake routine and, periodic maintenance, emergency works and related activities on the federal roads in Sibu, Bintulu and Mukah.

HCM Engineering’s 51 per cent owned subsidiary, Roadcare (M) Sdn Bhd, was awarded the privatization concession for the maintenance of federal roads in the central and eastern region by the Government in 2001.

The 15-year concession is expected to generate between RM150 million and RM170 million for the company.

“We are now seriously looking to expand ourselves overseas. As a start, we have linked with overseas partners in Libya, India and Bangladesh,” Hasnur said.

Last October, HCM formed a joint- venture company known as HCM-Ikhtisas Sdn Bhd with Biet Al-Ikhtisas Engineering Sdn Bhd, a non-resident controlled company incorporated in Malaysia, to bid for projects in Libya.

HCM-Ikhtisas has an authorised capital of RM100,000 comprising 100,000 ordinary shares of RM1 each.

The paid-up capital of HCM-Ikhtisas is RM10 comprising 10 ordinary shares of RM1 each, of which 60 per cent is held by HCM and 40 per cent by Biet.

Hasnur said the company is confident of clinching at least one foreign contract by the end of the first quarter or the first half of next year. Turkey and Indonesia are likely targets for overseas ventures as well.

HCM contributes 75 per cent to Protasco’s revenue annually. Protasco has three other subsidiaries — Kumpulan Ikram Sdn Bhd, Protasco Trading Sdn Bhd and Paves Sdn Bhd.

Protasco hopes to generate RM750 million in revenue and profit after tax of RM52 million for this financial year ending December 31 2003. Last year, the company posted RM715 million and RM43 million revenue and profit respectively.