April 2010 - Keppel Corporation

Sustaining Growth 7Engineering (KIE) started offthe year with two contractwins in China, one ofwhich involves providingtechnology for the expansionof an existing waste-toenergyplant in Shenzhenwhich will eventuallybecome the largest inChina. KIE is well-positionedto meet the demands of thegrowing China market, inwhich it holds a leadingshare. Other markets withgood potential are the UKand the Middle East, whereKIE is growing a goodportfolio of projects.Meanwhile, KeppelTelecommunications&Transportation has openeda new data centre facilityin Singapore. Additionalwarehousing capacity inHanoi and Ho Chi Minh Cityin Vietnam will come onstream in the coming monthswhile a new distributioncentre in Foshan, China willbe operational in the secondhalf of the year.In power generation, KeppelEnergy is planning theexpansion of our powerplant on Jurong Island tomeet the growing needs ofthe Singapore market. It isalso diversifying its energysources, having recentlysigned a conditionalagreement to purchaseliquefied natural gas fromBritish Gas.For our Property Division,regional markets havecontinued to register growthin the first quarter. PrivateKeppel Energy is planning the expansion of its co-generation power plant to meet the growing needs of the Singapore markethome sales in Singaporehave stayed strong. In thecommercial segment, leasingactivities have picked upwith returning businessconfidence. Phase 1 of ourMarina Bay Financial Centreis now effectively fully leased,ahead of its completion laterthis year.Our sales in China haveremained healthy, reflectinga real demand for homes bythe growing middle class inurban centres. In one of ourChengdu projects alone,more than 300 units weresold over the long weekendholiday in China earlier thismonth. The Chinese havesince introduced a freshround of measures to coolthe property market.BUILDING ON FIRMFUNDAMENTALSKeppel has firmfundamentals. We are wellpoisedto ride an economicupturn and capture morevalue for the Group’ssustainable growth, bothorganically and throughacquisitions. However, thereare cautions that the upturnmay not be very robust.We will continue tostrengthen the synergyamong our businesses.With the growing demandfrom the need for a moresustainable environmentthrough increasingurbanisation, particularly inAsia, we see opportunities inmarrying our competenciesin environmentalengineering and propertyto develop integratedtownships in China, Vietnamand Indonesia.The Sino-Singapore TianjinEco-City is well on its way tobecome a commerciallyviable and sustainableshowcase for China with itsintegrated eco-friendlyresidential, commercial,industrial and cultural-leisuredevelopments.Last year, we benefited fromour enhanced productivityand operational efficiencies.This is an area we willcontinue to hone. To stayahead of competition, wewill also further strengthenour execution excellence andtechnology across the Group.keppeliteKeppelite I April 2010