MHB Holds Strategic Dialogue with Contractors (Malaysia)

Malaysia Marine and Heavy Engineering Holdings Berhad’s (MHB), wholly-owned subsidiary-Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), recently held a strategic dialogue with more than 50 of its top – performing contractors and vendors working for various divisions of MMHE such as the Offshore Business, Marine Repair Business, Yard Optimisation and Administrative Services.

In line with an ongoing business transformation initiative that is aiming to enhance vendor and contractor performance in the Company; MMHE’s Supply Chain Management division has been conducting an assessment of its contractors since August last year until January 2013.

Speaking at the dialogue session held in Johor Bahru in late March 2013, Dominique de Soras, Managing Director & Chief Executive Officer of MMHE said, “Since MMHE started its business transformation programme last year, we are seeing a different MMHE evolve and emerge. It is motivating to know that some of the change initiatives have created significant impact in terms of cost savings and resource optimisation.”

Earlier on 5 and 8 March 2013 respectively, MMHE signed long – term agreements with five key contractors for the provision of structural fabrication services; and long term price agreements with 19 vendors for the supply of structure, piping and electrical and instrumentation materials.

More of such strategic partnerships are expected to be forged by the Company over the coming months.

The collaboration between MMHE and its key contractors and vendors will help build trust and establish mutually beneficial partnerships for the overall sustainability of the offshore fabrication industry.

Puan Hasinah binti Kamrudin, MMHE’s General Manager for Supply Chain Management briefed the contractors on the categorisation of their assessment results.

Contractors in Class A are classified as partners, and as preferred contractors in Class B. She emphasised the importance of the assessment criteria such as value added services, work execution, timeliness and compliance to operational health, safety and environmental management standards.

Hasinah added, “MMHE looks forward to the contractors’ commitment to deliver at the highest level as their performance is crucial to drive the Company’s transformation journey further.”

Press Release, April 5, 2013

 

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