ChangHuat ... Jun 09

A maker of plastic parts which recently diversified into oil and gas sector, said it plans to boost its oil storage capacity in Tanjung Pelepas within next two years.

It is negotiating for more oil and gas related contracts with two international oil majors, and it aims to be a major oil storage operator in the country.

The company slipped into the red last year with a RM11.7 million net loss, from RM889,000 net profit in the previous year. Its net loss widened to RM7.5 million in the first nine months to March this year, compared with RM2.3 million in the same period last year.

In Sept 2008, it moved into the oil and gas industry after spending RM45 million cash to buy a 63 per cent stake in a privately-owned storage provider. The company it bought has a five-year contract till September 2012 to service Swiss-based Glencore International, a major oil supplier in the world.