OTHERS INSOURCING OF REPAIR AND MAINTENANCE SERVICES OF CARGO HANDLING EQUIPMENT BY A SUBSIDIARY OF SURIA CAPITAL HOLDINGS BERHAD ("THE COMPANY" OR "SURIA")

SURIA CAPITAL HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
INSOURCING OF REPAIR AND MAINTENANCE SERVICES OF CARGO HANDLING EQUIPMENT BY A SUBSIDIARY OF SURIA CAPITAL  HOLDINGS BERHAD ("THE COMPANY" OR "SURIA")

We wish to announce that Sabah Ports Sdn Bhd (SPSB), a wholly-owned subsidiary of the Company has decided to insource the repair and maintenance services of cargo handling equipment from its wholly-owned subsidiary, S. P. Satria Sdn Bhd (SP Satria) effective September 2017.

SP Satria was incorporated on 22 July 2003 as a joint venture company with the objective of supplying the repair  and maintenance services for cargo handling equipment and to have agencies with vendors to supply spare parts to SPSB.  Repair and maintenance of cargo handling equipment is part of port's undertakings under the privatisation of Sabah Ports. On 1 January 2016, SPSB has acquired 100% equity of SP Satria from SURIA and Trac-Wheels (Kota Kinabalu) Sdn Bhd.

Under the insourcing exercise, SPSB absorbs a total of 70 staff of SP Satria and will purchase existing spare parts at the cost of RM3.7 million (as of 31 December 2016).  With the insourcing, duplication of functions such as Human Resource, Administration and HSE can be streamlined to reduce overhead costs. The insourcing of the repair and maintenance services is part of the Company's strategic plan to rationalise the existing businesses that are not contributing positively to the Group's earnings.

This announcement is dated 8 September 2017. 






Announcement Info

Company Name SURIA CAPITAL HOLDINGS BERHAD
Stock Name SURIA
Date Announced 08 Sep 2017
Category General Announcement for PLC
Reference Number GA1-08092017-00053