FBM Hudson's Process Gas Waste Heat Boilers - KNM Group

KNM Bulletin
Issue 06 │ September 2012
KDN No : PP 16290/02/2012(029131)
World Class Process Equipment Manufacturer
and Total Solutions Provider www.knm-group.com
I am pleased to present the 6th edition of Berita KNM. The previous
edition was issued in December 2011. I’d be the first to admit that
we would have to do better in bringing news about KNM to your
desks more regularly. Still, I’d have to say that it is not all up to
the editorial team. Your contribution helps as well. We are always
looking for good content that are newsworthy and exciting and so,
if there is anything that you would like to share with all of WARGA
KNM, please do drop us a line! Pictures too please (if you can
manage it).
A lot has happened in and around KNM since the beginning of 2012.
In this edition, you will learn more about our KNM cousins as far
away as Germany and Canada. If you ask me, they are just like us
Malaysians –minus the cowboy hats of course!
Closer to home, KNM’s Global Transformation Plan was approved by
our Board of Directors’ and subsequently rolled out earlier this year.
The development of the Plan was preceded by a 3-day Workshop
attended by all the Senior Management of KNM, worldwide. As a
member of the Working Group for the development of the Plan, I had
the privilege of attending the Workshop as well. It was interesting
to note the vibrant and sometimes heated discussions among the
Senior Management of different nationalities regarding the state
of KNM and on how the Group should be transformed. For more
details on the Plan, just carry on reading.
In parting , the editorial team would like to take this opportunity to
wish all our muslim readers a Happy Eid Mubarak ! We hope your
Hari Raya experience was a memorable one and trust that all are
safely back at work.
Fariz Abdul Aziz
Editor-in-Chief
EDITOR’S NOTE
P.S. - If you do have exciting news to share, please forward them to
Michelle Mok at michelle@knm-group.com
Editorial Team
• Ng Boon Su (Advisor)
• Fariz Abdul Aziz (Editor-in-Chief)
• Michael Lee
• Michelle Mok
New Kids On The Block
We are pleased
to announce
some recent new
additions to our
Malaysian group.
May we extend
our warmest
welcome to the
new members
of KNM!
Mr Richard Voon has joined KNM as
Chief Financial Officer since July 2012.
He is a Chartered Accountant (ACCA)
with more than 20 years experience in the
areas of auditing, accounting, treasury,
taxation and corporate planning in various
industries. He was with Cuscapi Berhad
prior to joining KNM.
Other New Employees
Magesan A/L P Hanchinural
Procurement & Logistics Manager
Mohan A/L Rajagopal
Material Forwading & Expediting Manager
Phan Nee Chin
Group Accountant
Suraj A/L Radhakrishnan
Engineering Manager
Teo Teck Lim
Works Manager (Gebeng Facility)

PROJECT HIGHLIGHTS
››› Canada Facility
FBM Hudson’s Process Gas Waste Heat Boilers
manufactured in Canada
The sulphur recovery WHB package for CNRL project,
awarded by Technip Italy SpA, had been designed
by FBM Hudson Italiana and manufactured by KNM
Canada. Comprising of a 3340 x 15500 mm furnace, a
2400 x 9150 mm boiler and a 2400 x 9100 mm steam
drum, the package was delivered fully assembled to
the project site.
The boiler design adopts the thin and flexible tubesheet
concept, with the first tubesheet made of stainless
steel. Inspected/stamped in accordance with ABSA
codes and standards, the project worked on a tight
schedule and required dedicated team work between
FBM Hudson Italiana and KNM Canada.
››› Lukoil Gissar
The project team posing for a group photo at its Kuala Lumpur Office in June 2012.

››› Melaka Facility
Waste Heat Boiler for Bugis Project, Singapore
Delivered from Melaka Plant in 1Q2012
››› Kuantan
Facility
››› Gebeng Facility
Electrostatic Coalescer for SOGT Project in Sabah, Malaysia
Delivered from Gebeng Plant in 2Q2012
Skids for SOGT Project in Sabah, Malaysia
Delivered from Melaka Plant in 3Q2012
Columns for Hijau Gasoil Project in Port Dickson, Malaysia
Delivered from Kuantan Port Plant in 1Q2012
SS Clad Columns and Drums for
Plateau Maintenance Project, Qatar
Delivered from Gebeng Plant in 2Q2012

PROJECT HIGHLIGHTS
››› Saudi Arabia Facility
Diesel Tanks for Jubail Offshore Supply Base, Saudi Arabia
Fabricated and erected in Saudi Arabia in 1Q2012
›››Gebeng/Saudi Arabia Facilities
Column for SAMCo Acrylic Acid Complex, Saudi Arabia
Delivered in 1Q2012, the column was fabricated in Gebeng Plant with final assembly in Saudi Arabia Plant
››› Changshu Facility
Vessels and Shell & Tube Heat Exchangers for BP Refinery, Australia
Delivered from Changshu Plant in 1Q2012
Buoyant Tower for BPZ
Production Platform, Peru
Delivered from Changshu
Plant in 2Q2012
Drums for Ikra Project, Russia
Delivered from Changshu Plant in 1Q2012
Large Vessels for AT88 Project, China
Delivered from Changshu Plant in 1Q2012

SPECIAL FEATURE
KNM’s Global
Transformation
Workshop
4 - 6 May 2012
The Plan
The Global Transformation Plan was approved by the Board in April 2012. Here are
the excerpts from our Chairman’s Message to the Group’s shareholders in respect
of the development and implementation of the Plan:-
“……………………….., the Board is focused on strengthening the Group’s structure
and operations and have addressed the following key areas for development and
improvements (the “Transformation Plan”):-
■ Strengthening our core process equipment business through the rationalization
of our fabrication facilities worldwide;
■ Upgrading our fabrication facilities to become “centres of excellence” to better
serve the needs of our global customer base;
■ Strengthening our internal processes and structure to better support our global
operations; and
■ Maximizing the value of the potential product synergies that exist amongst all our
operating companies.
The successful implementation of the Transformation Plan in the future will require
the full dedication and commitment of our entire workforce and God willing, we will
see positive results arising from this particular exercise in the near future.”
(ref: KNM Group Berhad Annual Report 2011, pg 11)
The Plan is currently being implemented and we would like to take this opportunity
to call upon all of WARGA KNM to fully dedicate and commit themselves to the
successful implementation of the same.
KNM’s senior management team from around
the world were gathered at the Colmar Tropicale
Resort in Bukit Tinggi to participate in a 3-day
Workshop focused on the development of a
plan that will transform the Group’s operations
and financial performance in the next few years.
Facilitated by Global Strategy Consultants,
Roland Berger, the participants at the Workshop
included our Chairman, members of the Board of Directors of KNM and all country
heads. The intensive three day course was punctuated by break-out sessions
and presentations by the respective country heads regarding the performance of
KNM’s subsidiaries and their plans for the future. The results and findings from the
Workshop were invaluable in the development of KNM’s Global Transformation
Plan (“GTP”) which has since been rolled out during the year.
The Workshop also afforded a rare opportunity for all of KNM’s senior management
team to gather under one roof and to relax, socialise and catch up on current issues
and events during breaks from the intensive workshop sessions. As a respite from
the often vibrant and sometimes heated deliberations at the workshop session, an
impromptu karaoke session was organized during the second night at the resort. It
came as no surprise that the event had managed to unearth the hidden (or some
might say questionable) musical talents of some of our senior management team.

GLOBAL EVENTS
Night of the Berlin Industry
9 May 2012
BORSIG participated in the first Night of the Berlin Industry
that took place on 9 May 2012.
About 80 visitors from the media and trade communities
were personally welcomed and taken for a guided tour by
the Managing Director of BORSIG GmbH, Mr Stefan Beck
at its Berlin premises. They visited the pressure vessel
and heat exchanger manufacturing sections as well as the
power plant services area and thereafter the Exhibition
on “175 years of BORSIG History”. The management of
BORSIG Process Heat Exchanger GmbH, Mr Michael Fix
and Mr Carsten Birk along with Mr Heinz-Werner Wied
of BORSIG Service Gmbh attended to various questions
posed by the audience on their work and products.

China Reaching Out To Employees
In May 2012, KNM’s COO for Asia Pacific,
Mr TC Mok visited Changshu Plant. The
visit included a management budget review
meeting and an updated tour of the facility
where he also took the effort to reach out to
the employees with the aim to encourage,
promote efficiency, quality and safety at
workplace.
4 - 8 June 2012
In our effort to continue making our presence felt in the
industry, KNM participated in the exhibition at the 25th World
Gas Conference, one of the most sought after show in the
world’s gas industry. Malaysia is honoured to host such
a prestigious event which is being held for the first time in
Southeast Asia and attracted more than 10,000 local and
international visitors.
With wide ranging Technical Programmes and inclusion of
high-level plenaries from leading industry decision makers
along with in-depth forums held on a wide variety of subjects,
GLOBAL EVENTS
KNM at World Gas Conference
2012 (WGC2012), Kuala Lumpur
the WGC2012 also featured a 11,400sqm of exhibition
space with over 200 companies showcasing their latest in
technologies and developments within the gas industry.
The triennial World Gas Conference has undoubtedly served
as an excellent platform that unites all the major players and
suppliers of the gas industry under one roof where their latest
products, services and expertise can be showcased directly to
the most influential gathering of gas professionals as well as
keeping abreast of the latest happenings and developments
within the industry.

BORSIG at the
ACHEMA
18 - 22 June 2012
For the 26th time, BORSIG took part at the
ACHEMA Exhibition held in Frankfurt/Main,
Germany, the world´s leading platform for
chemical engineering and process industry
with more than 4,000 exhibitors from 50
countries. Occupying a 181 sqm booth,
BORSIG showcased its products and
services to more than 180,000 visitors. This
year, BORSIG’s 175th anniversary was the
main focus. It’s booth was a stand-out on
the show floor. Notable for its rich historical
heritage of 175 years ago in the locomotive
industry, the booth was designed to
resemble a railway station and featured
an array of remarkable milestones and
achievements in its 175 year history against
its present world leading technologies in
manufacturing compressors, pressure
vessels, heat exchangers as well as
membrane technology.
The interest in BORSIG was overwhelming.
Many constructive and promising
discussions with former, actual and potential
customers were had. All in all, BORSIG’s
Exhibition at the ACHEMA was a huge
success and showed the vitality of the 175
year old company - BORSIG.
Visit by
JGC to KNM’s
Melaka Plant
18 June 2012
JGC’s representatives,
Mr Daisuke Ogawa and
Mr Kimitoshi Sano with
KNM’s management in
Melaka.
KNM’s Annual General Meeting
26 June 2012
KNM held its 10th Annual General Meeting (AGM) at Mines Wellness Hotel in
Sri Kembangan, Selangor where shareholders were updated on the overall
performance of the company during the financial year ended 31 December 2011.
GLOBAL EVENTS

NETWORKING AND SOCIAL ACTIVITIES
Canada
Annual Bull-Bash in Tofield
In April 2012, KNM Canada sponsored Tofield’s Annual
Bull-Bash, a bull riding event that drew 32 cowboys from
across the world. The event was a sold out and a good
time was had by all. KNM received plenty of recognition
for their generous support of the community. We look
forward to making this an annual sponsorship event.
BORSIG at the Berlin Company Run
On 1 June 2012, 18 employees of
BORSIG participated in the Berlin
Company Run 2012. Over 12,000
people took part in the city wide
company run event that featured
a 5.5 km track. The first BORSIG
runner, Mr. Olaf Böttge took 18
minutes and 48 seconds to finish
15th in the race.
Germany

NETWORKING AND SOCIAL ACTIVITIES
IMM Golf Tournament
KNM sponsored and played at the Golf Invitational Tournament event held on 2 June 2012, organised by Institute
of Materials, Malaysia (IMM) at Kelab Golf Sultan Abdul Aziz Shah, Shah Alam, Selangor.
Maybank Bowling
Tournament
Staff at KNM HQ were invited to play at the Maybank Global
Market Bowling Tournament held on 9 June 2012.
MISIF Golf Invitational Challenge 2012
KNM participated in this sporting cum social event organized by MISIF on 5 July 2012.
KNM GROUP BERHAD │ World Class Process Equipment Manufacturer and Total Solutions Provider
15, Jalan Dagang SB 4/1, Taman Sungai Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan, Malaysia
T +603 8946 3000 | F +603 8943 4781 | E knm@knm-group.com | www.knm-group.com