MANAMA: Bahrain-based ship and rig repair facility Asry is banking on its new fabrication and engineering division to make up for revenues lost in its traditional business due to challenging conditions.
The company, which has had to downsize its manpower by 21 per cent since the start of 2017, is targeting $490 billion worth of projects in pre-execution phase across the GCC in its target sectors of power, gas, oil, chemical, water and industrials, a top official told the first-ever offsite Press conference in the company’s 40-year history.
Asry’s new construction and engineering senior manager Sauvir Sarkar feels there are insufficient fabrication facilities in the region, and even fewer in Bahrain.
“Due to this, much of the fabrication and engineering work is being contracted outside of the region, even from Bahrain. Asry can now be considered a preferred option for fabrication work in the region. We believe
regional projects should be serviced by regional companies,” he said in response to a question at the Capital Club Bahrain yesterday.
The new arm – which provides modular fabrication, steel structures, piping solutions, offshore structures and vessel construction – is the fourth pillar in the company’s newly-defined core services, after ship repair and conversion, rig repair and conversion as well as naval repair and conversion.
The company’s ongoing restructuring aims at control of operating expenses, along with increasing efficiency and improving productivity to be able to face challenges amid severe competition and the introduction of new competitors in the limited market.
Asry chief executive Andy Shaw said at the event that fabrication and engineering are already part of Asry’s DNA as they are key elements of the ship and rig repair business.
“Now we are deploying those years of expertise as their own independent revenue stream and this is an opportunity to establish ourselves as the leader in modular fabrication in
the Arabian Gulf.
“There is significant growth potential in the regional fabrication sector, starting with Bahrain, where our new ownership structure as Bahrain government-owned entity will provide stability and longevity to meet fabrication clients’ long-term needs.”
New developments in the petrochemical, desalination, and energy sector in Bahrain and the GCC have pushed demand beyond current supply, opening up a target space for Asry.
The yard has more than 40 years’ experience in steel, piping and mechanical workmanship, as well as more than 5,000 average employees on site, and almost 1.5m square metres of work space that is waterside with instant access to water transport links.
Asry’s facilities include a 500,000 dwt drydock, two floating docks of 252m and 227m in length, 15 repair berths with a total length of approximately 5,000m, twin 255m slipways, as well as a 250,000+sqm fabrication area, and a full range of workshops and service centres.