This article first appeared in The Edge Financial Daily on October 15, 2019

KUALA LUMPUR: Stainless steel cookware maker Ni Hsin Resources Bhd plans to invest RM10 million in Satumarin Sdn Bhd to expand into the marine and oil and gas (O&G) sectors.

The expansion announcement came after the group agreed to buy a 49% stake for RM735,000 in Satumarin, which is in the business of providing offshore marine services and logistics support, besides project management and marine technical consultancy services to the O&G industry.

Ni Hsin inked an agreement with Satumarin yesterday to effect the deal. The company, Ni Hsin said in a statement, also holds the licence to supply products/services to exploration and O&G companies in Malaysia issued by Petroliam Nasional Bhd.

Upon successful transfer of the shares to Ni Hsin, Ni Hsin would subscribe to up to 9.265 million redeemable preference shares for RM9.265 million in Satumarin within five years, Ni Hsin said.

The venture opens up new opportunities for Ni Hsin to expand into the marine and O&G sectors in Malaysia, the Asean region and beyond, said Ni Hsin group chairman Sofiyan Yahya. “Ni Hsin is already familiar with the global market, and hence will further enhance Satumarin’s global aspirations,” he added. Ni Hsin shares closed two sen or 10.81% lower at 16.5 sen yesterday, with a market value of RM56.34 million.