FOUR local companies have joined forces under a government programme to provide support services to the energy and marine industries in the Middle East.
Anchor company Rotary Engineering and partners Heatec Jietong, Jason Electronics and Pamarine yesterday signed a memorandum of understanding (MOU) for the joint venture.
Each firm has a 25 per cent stake in the enterprise, known as iPromar.
It will be the first oil and gas consortium to be formed under International Partners - or iPartners as it is known.
This scheme was launched by International Enterprise (IE) Singapore in 2003 to help local companies form alliances to boost their chances of success in accessing overseas markets.
iPromar aims to achieve overseas sales of $10 million by 2013.
It will manage projects and provide services and products to engineering, procurement and construction firms in Saudi Arabia and the Gulf region.
'Each of us offers different services,' said Rotary Engineering chairman and managing director Chia Kim Piow.
'By seeking overseas projects as an alliance, we have a greater competitive edge, thus increasing our chances of penetrating the oil and gas and marine industries in the Middle East more successfully.'
Mr Chia added that the group has begun preliminary talks with potential partners to clinch projects.
So far, 32 consortiums involving 161 companies have been formed under iPartners.
They span a wide range of industries, from airport services to building and infrastructure, health care and logistics, and are projected to reap a combined $3.14 billion in overseas sales by 2013.
Such alliances allow firms to leverage on one another's strengths, as they can combine resources and complement each other.
This in turn allows them to pursue larger projects.
IE Singapore helps in the early developmental phases of the alliances.
'The global downturn presents an even greater impetus for companies to work together in terms of sharing risk, market knowledge and expertise as well in coming up with a unique value proposition,' said Ms Quek Ai Nah, assistant director in IE Singapore's capability development group.
This article was first published in The Straits Times on December 13, 2008.
