Wah Seong Corporation Berhad Annual Report 2021 38 MANAGEMENT DISCUSSION AND ANALYSIS RENEWABLE ENERGY (‘RE’) Discussion of strategies, operational capabilities to achieve the desired business objectives and results The RE segment comprises of two main units namely Industrial Engineering (“IE”) unit and Agro-based Industry (“AI”) unit. IE unit is focused on process equipment engineering, fabrication works and steam solution business. AI unit provides steam turbines, oil-room equipment, spare parts, repair and maintenance services to the global palm oil industry and other agricultural related industries. Successful delivery of process equipment to Mega LNG Project by IE unit in 2020 has warranted the trust from our major customers with the award of the new Second Phase LNG Project in Louisiana, USA, for the contract sum of RM83.19 million. In 2021, IE unit managed to successfully ship and barge out all the large sized equipment via our private jetty at Teluk Panglima Garang (“TPG”) yard for the Petronas’s Kasawari Gas Development Project and the LNG Canada Project respectively. IE unit’s relocation to our new TPG office cum manufacturing complex in 2021 has fully integrated our operations and strengthened our position as one of the leading process equipment providers in this region. The increasing demand for sustainable bio-based chemicals has resulted in massive activities in the construction of new oleo chemical processing plants. The increased activities have benefited IE unit and hence, contributed positively to our revenue and profits. IE being one of the major equipment suppliers in the oleo chemical sector won all the six (6) splitters available in 2021. Splitter is the critical component of the oleo chemical plant and is usually awarded only to proven and reliable process equipment fabricators like IE. Our steam solution business within IE unit managed to secure multiple units of electrostatic precipitator (“ESP”) in 2021 with the total project value of RM31.30 million, resulting from a hike in demand for dust emission control equipment in the local palm oil mills (“POM”). The rollout of the high-efficient single-pass compact boilers, which burn empty fruit bunches (“EFB”) as biomass fuel, has captured various interests from industrial players and yielded some major orders. The AI unit began our first solar power generation for own consumption in August 2021 reducing significantly AI electricity costs. This solar energy project is part of the AI unit’s effort and commitment in promoting green energy and lowering carbon emission from our main core activity of assembly and sale of Shinko steam turbines in Malaysia. During 2021, AI unit diversified into Empty Fruit Bunch Depurating System which remove impurities in the fibres during the production of pulp and papers. The success of this pilot project provides an additional option in the utilization of empty fruit bunches, a bio-waste generated by the palm oil mills.
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