TNB REMACO Signs Alliance Agreement With TURBOCARE SPA

05/11/2007

~ TNB REMACO to get full access to technology and skill sets via technology transfer through TurboCare ~ Agreement with multinational TurboCare Group is first of its kind in the region ~ Alliance allows utility giant opportunies to increase revenue significantly and brings TNB a step closer to goal of achieving global presence TNB Repair and Maintenance Sdn Bhd (TNB REMACO) has forged an Alliance Agreement with TurboCare SpA in an official signing ceremony on 2 November 2007 at the Nikko Hotel, Kuala Lumpur. The company, which is 100% owned by national utility giant Tenaga Nasional Berhad (TNB), is expected to gain significant value in terms of staff technical knowledge and competences from the alliance with TurboCare SpA, the Italian branch of the multinational independent service provider group, TurboCare. Through the official partnership in the providence of technology transfer from TurboCare SpA, TNB REMACO will now have access to the TurboCare SpA’s reknowned and established Intellectual Property for repair technology. TurboCare Group of businesses are the world’s largest network of independent service providers offering maintenance support to owners and operators of rotating equipment manufactured by major industry OEMs. TurboCare Group of businesses combine the strengths of its long history of steam turbine service capabilities with the gas turbine service capabilities of several joint ventures. It has added compressor, generator, electric motor and aero-derivative service and overhaul capabilities, as well as local service shops, to be able to provide full service solutions to the customers regardless of rotating equipment manufacture and brand. With 17 businesses around the world and more than 2,500 highly skilled employees, TurboCare Group offers comprehensive service solutions in the industrial and power generation markets in more than 100 countries worldwide. TurboCare SpA, which is based in Torino, Italy, has over 80-years of experience in gas turbine repairs, overhauls, maintenance services. TNB REMACO’s mother company TNB also expects an increase in its revenue now with the forging of this Alliance. In fact, the monopoly intends to widen its share in the local and regional markets via the availability of the newly created Alliance sales channel and network. The Alliance also means that TNB can now enjoy the library of experiences through TurboCare SpA’s reputable track record and technical expertise to back-up its goal to establish a strong grip in the energy sector and its related industries. Previously, TNB had communicated its 20-year strategic vision to achieve Service Excellence by the year 2010 and become a global industry player by 2015. Through the TNB REMACO-TURBOCARE SPA alliance, TNB can now look forward to an increase in its non-tariff revenues, allowing the Government-Linked Company (GLC) to further strengthen its stake in the energy and power industry, subsequently bringing it closer to its goal to achieve global presence within the decade. The TNB REMACO and TurboCare SpA Alliance is merely the first step in a mutually desired intention for both TNB and TurboCare SpA to eventually form a joint venture partnership in the near future. The Alliance is currently seen to be a foundation for a closer cooperation towards establishing the joint venture. In the meantime, the existence of the Alliance allows clients of both companies benefit from quality industry required services at new competitive prices. TurboCare SpA would be providing its expertise to enhance TNB REMACO’s existing Repair Centre. Apart from an upgrade in the technology of its existing machineries, the latter expects to procure new equipment that will enable an expansion in its repair and service capabilities. TurboCare SpA will also be mobilizing an international expertise team to Malaysia in order to develop a new set of repair producers. Both TNB REMACO and TurboCare SpA will also be sharing their existing customer networks through the creation of a joint sales and marketing team as representatives of the Alliance. In his speech to address the witnesses of the signing ceremony, TNB REMACO Chairman, Dato’ Sri Che Khalib Mohamad Noh, defined the signing as `a huge step into a new frontier’. Dato’ Sri Che Khalib, who is also the president and chief executive officer of TNB, was pleased to note that the alliance agreement would turn the local perception `that service comes with a high price’ into a myth. Dato’ Sri Che Khalib said that, `Today onwards, TNB REMACO’s Repair Centre would be enhanced with the state of the art and latest technology & equipment. For operators and asset owners in South East Asia, REMACO will become a regional repair hub, thus providing an economical alternative to the previous practice of importing services and parts from Europe or the States. This will allow many Malaysian operators and asset owners the alternative option of sourcing for parts and repair services locally.’ `This agreement is an important achievement for TNB and TNB REMACO in our quest to expand our businesses to the region and the global market. I am very confident that having the combined the strength and brand names of both TNB and TurboCare SpA, we will be setting a benchmark for the energy-related industry in Malaysia and in the region,’ he added. Dato’ Sri Che Khalib later signed the agreement in his capacity as the Chairman of TNB REMACO. TurboCare SPA chief executive officer, Luigi Tarricone was present to sign the agreement for TurboCare SPA. They were witnessed by Dato’ Abdul Razak Majid, who is a member on TNB REMACO’s Board of Directors, and Brian K Glynn, the Vice President of TurboCare Group. Also present as witnesses to the ceremony were Malaysian Energy Commission Chairman Datuk Pian Sukro, TNB REMACO Managing Director Azizan Abd. Rahman and representatives from TNB, TNB REMACO and TurboCare Group. About TNB REMACO TNB REMACO was first established-as the National Electricity Board’s (NEB) Centralized Maintenance Team (CMT) in 1979 as a unit within the company dedicated towards carrying out turbine service and repair work. The unit came into its own as a private limited company in the year 1995. TNB REMACO’s maintenance and improvement solutions cover power plant and equipment of all sizes, types and makes. Its Repair Centre, situated in the country’s oldest power station Connaught Bridge Power Station, was recently upgraded to provide enhanced solutions to the regional and international markets. The company also offers comprehensive range of testing and diagnostic services as part of its total solutions approach to customer service. TNB REMACO also provides world class project solutions for TNB’s major stakeholders with power related investment interests. In TNB REMACO also sits BUYCO, TNB’s procurement arm for capital spares and ancillary equipment. Until 2002, TNB REMACO was operating to serve only its parent company. Since expanding its services to external clients, TNB REMACO now boasts a wide range of clients in the local scene, including all the TNB-owned power stations, Genting Sanyen and Pahlawan Power. It also provides its expertise to the Oil and Gas industry to Petronas CUF, Petronas MLNG and GDC KLIA Sepang. The company also has an overseas presence in Myanmar, Belawan, Brunei, Pakistan and Saudi Arabia. About TurboCare Group TurboCare Group of businesses are the world’s largest network of independent service providers offering maintenance support to owners and operators of rotating equipment manufactured by major industry OEMs. TurboCare Group of businesses combine the strengths of its long history of steam turbine service capabilities with the gas turbine service capabilities of several joint ventures. It has added compressor, generator, electric motor and aero-derivative service and overhaul capabilities, as well as local service shops, to be able to provide full service solutions to the customers regardless of rotating equipment manufacture and brand. In 2006 the member companies adopted the TurboCare brand. TurboCare Group provides a worldwide, integrated network of service companies uniquely positioned to improve the performance of your rotating equipment and reduce your overall costs of operation. With 17 businesses around the world and more than 2,500 highly skilled employees, TurboCare Group offers comprehensive service solutions in the industrial and power generation markets in more than 100 countries worldwide. Founded on strengths in technical and engineering capabilities, TurboCare Group offers a complete range of component repair, equipment refurbishment, system retrofits, engineering, and parts replacement services.. Employing the principles of flexibility, responsiveness and customer competitiveness, and based on the independent service provider model, TurboCare Group maintains a “local” approach with operations in every region in the world.