LOOKING beyond oil & gas (O&G), Serba Dinamik Holdings Bhd is optimistic of becoming a major player in the international renewable energy (RE) sphere by riding on its acquisition of Aberdeen (Scotland)-based Wellahead Engineering Ltd.
Despite volatile economic conditions and external challenges, the Malaysian O&G titan is pressing ahead with plans to expand and make its mark in this business segment.
The Wellahead acquisition is just the beginning of Serba Dinamik’s venture into an energy segment that is set to grow exponentially in the long term, according to its group managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah.
“There are huge business opportunities in the renewable energy sector, especially with windmill farms,” envisages the Serba Dinamik founder.
“Wellahead has been tasked to establish links and identify opportunities for the Serba Group in this segment and act as a facilitator to penetrate the channels into this potentially lucrative sector. Plans have been initiated to make this possible.”
To re-cap, Serba Dinamik acquired an 80% equity interest in the precision engineering service provider for the North Sea O&G industry for £1.5 mil (RM8.09 mil) on June 12 last year in its quest to further expand its geographical footprints.
Tapping RE opportunities
A major hub for major O&G multinationals, Wellahead’s home base in Dyce, Aberdeen has recently emerged as a centre for major players in the offshore windmill farm industry. Aberdeen is not only a centre for O&G activities but massive growth of the RE sector is expected to bloom in this part of the UK.
“Aberdeen has traditionally enjoyed strong links with the Scandinavian countries and there are huge opportunities to penetrate these markets via our base in Dyce,” Abdul Karim pointed out.
“Serba Dinamik also enjoys Platinum membership status in the Aberdeen Chamber of Commerce which has global links to the O&G and renewable energy trade associations to tap into business opportunities.”
Wellahead has been in business for over 30 years with a good reputation and track record in the industry for design and the manufacturing of specialised and high precision parts for the upstream O&G sector. Many of Wellahead’s manufactured products are exported to Europe, ASEAN countries and Australia.
Moreover, the company has maintained a profitable operations in the last 12 months despite extremely challenging market conditions. Its clients include major O&G players such as Expro, Technip, One Sub Sea, BP, Baker and Schlumberger. The company was founded in 1998 by Mike Coutts who is the current managing director with 20% stake.
Strategic European presence
According to Abdul Karim, Serba Dinamik aspires to set up a strategic presence in Aberdeen which is deemed the O&G capital of Western Europe.
Another of Serba Dinamik’s 100% owned subsidiary is in the process of setting up its offices and test workshop in the same facility at Kirkhill Drive. Quantum Pump specialises in the packaging, testing, and commissioning a complete range of water pumps, fire water pumps and related products.
“Wellahead’s base in Aberdeen will allow easy access to the UK and European markets. It also plans to access the global market for Wellahead’s products. Early success has resulted in orders from Bangladesh and Oman,” said Abdul Karim.
Although activities in the O&G sector experienced some serious downward trends with Wellahead having to fight hard to sustain its operations, the company’s good reputation and capabilities have helped it to weather the current storm.
“Although business recovery has yet to complete, market conditions are gradually improving,” noted Abdul Karim.
Serba Dinamik has plans to further improve Wellahead’s capabilities in anticipation of further market expansion.
As of end 2020, Wellahead moved into new premises acquired outright by Serba Dinamik. The premises are located on a three-acre site with a total built-up area of 15,000 sq ft comprising workshop and offices.
Further investments in the latest high-tech five axis machinery have enhanced the capacity, capability and productivity of the company. Moreover, Wellahead’s location in Kirkhill Drive, Dyce is close to the Aberdeen International Airport with many key O&G industrial players having offices within its proximity.
In essence, Serba Dinamik’s acquisition of Wellahead is seen as offering multiple positive factors in the long term, including the latter’s profitable operations which contribute the most tangible benefits.
Wellahead’s high-level technological skills and know-how can also add to Serba Dinamik’s overall capability in precision machining and related spin-offs.
Consequently, Abdul Karim is confident that Serba Dinamik will be able to offer high-tech solutions from Wellahead to all of its subsidiaries and associates around the world. – Aug 18, 2021
