KTL GLOBAL has unveiled key corporate changes following a review of its businesses. These include streamlining its internal and operating efficiencies that will involve a significant relocation of operations from Singapore to Johor, Malaysia.
By June, the group will have relocated the bulk of its heavy steel rope and rigging production from Singapore to Tanjung Langsat. The bulk of the managed services will also relocate to Malaysia. The group intends to increase its manpower in Malaysia from 18 to 50 by the end of 2015.
"The relocation of large portions of steel rope and rigging manufacturing, warehousing and servicing activities to Malaysia from Singapore will result in significant improvements in internal efficiencies," the group said on Tuesday. "These are expected to translate into significant operational cost efficiencies in FY2016, which will rise further in FY2017."
KTL Global manufactures premium steel wire ropes, synthetic ropes, and subsea rigging equipment including heavy lift slings. It also provides related technical services to the oil and gas market.
Stemming from its strategic review, the group is also scaling up the value chain by focusing on higher-value products and services and deepening penetration in existing markets and entering new ones.
It will focus on higher-value products such as heavier tonnage synthetic ropes and higher-margin services including certification and managed services.
To meet the higher demand in the Middle East, the group intends to increase staff strength in the region to 55 from 44 within a year, while building up its capabilities to position it as a hub to target the European market too.