Page 9 - cosmosteel

IN ADDITION TO
GROWING OUR
DOWNSTREAM ENERGY
AND MARINE BUSINESS,
ONE OF OUR KEY
STRATEGIES GOING
FORWARD IS TO FOCUS
ON VOLUME SALES,
PARTICULARLY IN THE
UPSTREAM ENERGY
SECTOR IN THE REGION.
expansionstrategiesbalancedwith
prudent financial management to
ensure long-termsustainability for
the Group.
One of our key strategies going
forward is to focus on volume
sales, particularly in the upstream
energy sector in the region.
Although thesemarkets aremore
competitive in terms of margins,
we believe the order sizes of such
projects will pay off oncewe attain
critical mass. We have intensified
our sales andmarketing activities
over the last year in this area and
plan to further step up our efforts
in order to grow our business.
In addition to the upstream
market, we are proud to have
many blue chip customers in
the downstream Energy and
Marine sectors, such as Shell,
ExxonMobil, AlstomandSembcorp
Marine, to name a few. As part
of our growth plans, we plan to
strengthen our relationships with
these existing customers, some
of whom have entered long-term
contract agreements with us,
and set the stage for more long-
standing partnerships through
our provision of quality products
and reliable deliveries.
As for geographical focus, we
have set sights on Myanmar,
which has an abundance of oil
and gas resources and active
energy-related projects. We have
steppedupoursalesandmarketing
efforts in Myanmar as well as
inked an exclusive Memorandum
of Understanding on 27 June
2013 with a Myanmar-based
group of companies to explore
the possibility of establishing a
strategic relationship. Plans to
develop this new market are in
progress and we have dedicated
personneloverseeingdevelopments
in this relatively untappedmarket
within ASEAN.
In addition toMyanmar, the Group
also sees significant growth
potential arising from the Energy
and Marine segments in China
and the Philippines, which have
good activity levels driven by
energy-relatedprojects.Weplan to
scale up our sales andmarketing
efforts in these markets in order
to capture new opportunities.
Even as we ramp up our business,
we wi ll not neglect Qual ity,
Envi ronmental , Occupat ion
Health and Safety standards at
the expense of our stakeholders.
These are important priorities to
us and we will continue to uphold
responsible policies and practices
as a good corporate citizen.
APPRECIATION
At this juncture, I would like to
take the opportunity to thank each
and every one of you for beingwith
CosmoSteel through the years
and contributing to the success
story of CosmoSteel.
To my fellow Board members, I
thank you for your counsel and
advice. To the management team
and employees of CosmoSteel, I
thank you formaking it possible to
run this Company efficiently; your
dedication is not unnoticed. To our
business partners, thank you for
your continued support and trust
in us through the years which has
enabled CosmoSteel to surpass
manymilestones. And to our loyal
shareholders, we appreciate your
support and confidence in us and
wewill continue to strive to deliver
positive results to you each year.
As always, I look forward to
meeting you at our AGM on 17
January 2014.
ONG CHIN SUM
Chief Execut i ve Of f i cer &
Execut i ve Di rector