TNB REMACO brochure - May 2017

MAINTAINING

POWER PROJECT PARTNERS

MAINTAINING

POWER Written by Wedaeli Chibelushi Produced by Vince Kielty

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WE INTERVIEWED TNB REMACO’S MANAGING DIRECTOR ANUAR YUSOFF ABOUT THE COMPANY’S DIVERSIFICATION PLANS

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NB Repair and Maintenance Sdn. Bhd. (TNB REMACO) is constantly diversifying itself and riding the changing landscape of the industry. Leveraging on technological development and clientele’s ever-changing expectations, TNB REMACO is set to become a premier brand with holistic solutions in delivering customer’s trust in its services.

TNB REMACO is wholly-owned by Tenaga Nasional Berhad (TNB), of which is the largest electricity utility in Malaysia and one of the largest in the region with an asset base totaling $30 billion and customer base of more than three million users. TNB REMACO was first incorporated as a subsidiary of TNB in 1995. The company is managed independently as a business organization within the corporate structure of the TNB group. While it shares the group’s core vision, values and culture, TNB REMACO nonetheless remains steadfast in the realization of its own corporate destiny.

Managing Director Anuar Yusoff explains the transformation in structure: “TNB REMACO used to be a small department supporting a bigger business. We did repair, maintenance and overhaul for their generating plants - their gas, steam and

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ANUAR YUSOFF

MANAGING DIRECTOR TNB REPAIR AND MAINTENANCE SDN. BHD. (TNB REMACO)

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hydro turbines. It was in 1995 when we became a wholly owned subsidiary of TNB that we diligently geared our resources and expertise in realization of the vision and mission of the company.”

How does TNB REMACO balance diversification with loyalty to its parent power plants? “Previously, we were exclusively servicing TNB’s existing fleet of power plants but have expanded our services for newly developed power plants and are also actively providing services to independent power producers (IPP’s) such as Malakoff and Powertek, as well as oil and gas (O&G) sector,” Yusoff explains. Among the O&G clients serviced by TNB REMACO are Petronas Gas Berhad (PGB), Petronas MLNG and GE Power.

Not only is TNB REMACO diversifying from the traditional energy market, it’s also exploring different geographical spaces. “In the middle of 2004, we started going into international markets,” Yusoff explains. The company has business presence within the South-East Asia and MENA (Middle East and North Africa) region, such as in Myanmar, Singapore, Brunei, Indonesia, Yemen, Kingdom of Saudi Arabia and Vietnam. Yusoff explains that TNB REMACO’s goal is to achieve 10 to 20 percent growth from overseas businesses: “I have to look at every opportunity to grow business locally as well as internationally. For the last three years, we started going aggressively into the Middle East,” he says. Currently, TNB REMACO has three operations

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Where Track Record Matters: Unlocking the Key to Siemens’ Long-Term Partnerships Rising human population, burgeoning urbanization and effects of climate change have emerged as pressing challenges that necessitate for a more sustainable set-up to reduce carbon emissions and improve our quality of life. At Siemens Malaysia, the continuous push in digitalization with ‘big data’ to create new technologies are transforming the way businesses, organizations, power plants and industries operate, charting new efficiency standards for buildings, and drastically reducing costs; undertakings that all contribute towards greater economic goals and national development.

Over the years, Power Generation Services of Siemens Malaysia has had the opportunity to score major contracts with key

clients and local service providers that eventually evolved into meaningful partnerships, mutually attuned to each other’s business needs. A flagship project comes in the form of the TNB Prai Combined Cycle Power Plant - dubbed as the most powerful and efficient gas-fired power plant today in South East Asia - for which Siemens Power Generation supplied two H-class gas turbines that achieved a generating capacity of more than one gigawatt and efficiency rating of over 60%. With more than 20 years experience in local field service, Siemens Power Generation Services closed a long-term service contract, including the placement of two onsite experts at the Prai Power Plant; bolstering customer

relationship whilst rendering immediate service to TNB. In March this year, Siemens Malaysia Power Generation Services unveiled its brand new tool depot in Kapar, Selangor, making it the flagship tooling facility for the organization in Malaysia in supplying tools and carrying out local repairs and refurbishment of high-complex gas turbine components in Asia Pacific.

The Field Service Team of Siemens Power Generation Services in Malaysia is the Regional Centre of Competence for Asia Pacific.

In ensuring that good talents are hired by Siemens, the organization sustainably expands employment and provides constant up-skilling programmes for employees to succeed in their job and stay relevant in the workplace.

Siemens Malaysia’s competitive compensation plans and flexi benefits for employees have translated to an all-time low attrition rate of 4.5% as of 2016 compared to the national market trend at 8.5%. For Siemens Power Generation Services, employing skilled manpower and drawing from a sufficient talent pool like engineers and project managers are critical to ensuring the sustainability of the business and our largebased projects. We also place strong emphasis in employee retention with continuous trainings that would elevate know-how, understanding of topics like quality, digitalization, improvement and cost reduction, and getting employees equipped with new technologies and software tools. As technology transfer is an important component of Siemens’s business, we ensure that a structured transfer of technical knowhow to local business partners and employees are properly executed.

At Siemens, safety is taken very seriously to ensure that employees work in a riskfree environment, and to return home to their families safe and sound. As the Zero Harm Culture initiator, Siemens management plays an integral role in implementing safety measures to prevent incidents, obviating health impairments, and continuously improving on existing systems. With Siemens Power Generation Services, our accountability and ownership over the Zero Harm Culture encompasses site inspections, audits, safety management tools, and safety trainings. Over the years, we have received much recognition for our highest standards in safety and quality performance.

Diversity is also valued in the Siemens workplace, the example being our 43% women representation in Siemens Malaysia workforce.

Siemens Power Generation Services has come a long way in transitioning to its present role that offers a

broad portfolio of products and services from high quality OEM components over field service, repairs as well as plant modernization, to longterm service agreements including operations and digitalization; the transition into the latter to improve efficiency, maximize profitability, increase transparency and enhance data-driven technology.

Siemens Power Generation Services is already deploying digitalization to analyze vast amounts of data, to predict and prescribe future maintenance measures and prevent unscheduled outages by using our digitalization platform ‘Mindsphere’. All these digital solutions would translate to economic savings and lowering carbon emission.

Together with our local partners, it underscores our commitment to advancing the nation’s clean energy agenda and a clear stride in a marathon of partnerships towards achieving many more milestones for the energy ecosystem of Malaysia.

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and maintenance (O&M) contracts in Kuwait, two in Pakistan and one in Kingdom of Saudi Arabia.

Although TNB REMACO has built a global presence, its roots are firmly planted in Malaysia: “As of December 2016, we have executed a contract for a Long-Term Service Agreement (LTSA) with Petronas Gas Berhad (PGB), the national petroleum company of Malaysia,” Yusoff says.

PGB awarded a MYR160 million contract to TNB REMACO for the maintenance of its gas turbine and related equipment for the Central Utility Facility (CUF) in Gebeng and Kerteh, for a duration of 6 years.

“Customer requirements keep on changing,” Anuar Yusoff says. “They keep on pushing their expectations.

For an example, TNB used to carry out a planned maintenance outage for roughly 50 days in the late 80s,

but now clients requested a shorter outage period, and we have to work 24/7 to fulfill their requirements. To support that, we need to have highly skilled and dedicated personnel, and the latest equipment.” When the petroleum prices rose in the early 2000s, TNB REMACO lost some of these employees to the O&G sector.

However, the firm worked hard to develop teams of adept and robust personnel, and during the last five years has managed to maintain a low turnover. Yusoff adds, “We have a good remuneration package that is within the best in Malaysia. In terms of competencies, we have a systematic training system which is conducted by TNB owned technical training centre, namely ILSAS. We have a training module where for the first three years of entering into TNB REMACO, all personnel will enrol into dedicated

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training modules that covers both technical and management courses.”

And in embracing the rapid development of the technological changes, TNB REMACO is keeping abreast with the changes by continuously developing highly skilled personnel. “In terms of technology adaption, we regularly maintaining the integrity of that equipment by sending our personnel for various training and certification program, as we definitely cannot afford to have failed equipment or incompetent personnel,” Anuar Yusoff explains. TNB REMACO also has established a comprehensive condition monitoring program for its client in ensuring reliability and efficiency of their equipment. TNB REMACO also prides itself by having a Repair Centre, which is located in Connaught Bridge, Klang. The Repair Centre can be considered a gem for the industry in view of its capabilities for performing various repair and refurbishment activities.

TNB REMACO is collaborating with

Original Equipment Manufacturers (OEM’s) for refurbishment of turbine parts and its components, apart from capability to perform bearing re-metalling, and reverse engineering services, just to mention a few of Repair Centre’s capabilities.

TNB REMACO also prides itself on having a varied field of services for potential customers. Anuar Yusoff says: “We call ourselves a onestop service provider - any client in energy related industry can utilize our expertise and services. We can assist them to design and build a power plant, perform the O&M of the power plant, conduct scheduled maintenance for the equipment, perform the test and diagnostic activities and also refurbish the turbine parts. At the end of the power plant life or its Power Purchase Agreement (PPA), TNB REMACO can also perform the decommissioning of the power plant and sell the parts. In a nutshell, TNB REMACO is capable of performing various activities during

1,000

Number of employees at TNB REMACO

the whole life cycle of the plant”.

We ask Yusoff whether TNB REMACO has reached its full capacity.

“Our target revenue in 2020 will be MYR1.9 billion and we will be going more aggressively to overseas market, especially Pakistan,” he states. TNB REMACO also wanted to increase its presence in the oil and gas industry. Currently, its revenue is comprised approximately 90 percent from the power sector and only 10

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percent from the oil and gas sector.

“In the current market conditions for the O&G sector whereby the petroleum price is dipping below USD60 per barrel, there is a promising chance for us in offering our services to the industry players. This is due to the fact that most of the O&G companies are currently opening its door for alternative service providers rather that exclusively engaging the OEMs, of which is of

ENERGY

“WE CALL OURSELVES A ONE-STOP SERVICE PROVIDER - ANY CLIENTS CAN UTILIZE OUR EXPERTISE AND SERVICES”

premium pricing,” Yusoff says.

TNB REMACO also aspired to establish its name in the EPC (Engineering, Procurement and Construction) business. “We aspire to be one of the most reputable EPC contractors, because before this we were more involved in the Project Management and Consultancy (PMC), but not in the construction side. We are currently preparing ourselves to enter into the EPC business.”

Yusof’s vision for TNB REMACO is clear, and the expansion of the business plan for TNB REMACO was built on a solid track record and coupled by its impressive expansion strategy. TNB REMACO is no longer in a single market platform, and has huge potential to grow rapidly whether it be internationally or into other sectors. We can’t wait to see what TNB REMACO does next.

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Address Telephone Fax LEVEL Email 23A, PJX-HM SHAH TOWER, NO.16A, PERSIARAN BARAT, PETALING JAYA, MALAYSIA Website 46050Â +603-7964 2600 +603-7964 2699 REMACO@TNB.COM.MY WWW.TNBREMACO.COM.MY