Az United (Materials Supply)

Az United was started in 2008 as the Group's first project in its diversification strategy. Since its inception, Az United has secured a major contract and successfully executed and completed the project on time in 1Q2010 and contributed positively to the Group's performance.

Az United has since diversified further to continue the momentum moving forward. Today, it is a recognised player in the construction and infrastructure sector. It has participated in tenders and projects either directly or in partnership with well-known players.

To date, it has won a S$2.80 million contract out of those it has participated with the remaining pending the outcome of evaluation. The contract, expected to complete in 2011, is for the supply and delivery of building materials for public infrastructure projects.

In addition, Az United has expanded its sourcing and procurement capabilities. It is now able to source directly across multiple sources and countries with expanded product offerings.

Moving forward, Az United is well-positioned to offer a one-stop solution to service the growing construction and infrastructure sectors. By leveraging on the Group's Marine business unit, it is capable of providing a compelling valued business proposition addressing the need of the construction and infrastructure sectors.

Az Marine (Marine Logistics)

Az Marine was the second project under the Group's diversification strategy, leveraging on the supply contract of Az United. Since its inception in 2Q2008, Az Marine has successfully recouped significant part of its investment through the supply contract of Az United and/or absorbed into the Group financials. This has positioned Az Marine with lower cost structure to compete effectively moving forward and for the long term.

Az Marine has since expanded into third-party chartering and transformed itself into a full-fledged marine transportation player in the market. As an independent marine transportation provider, Az Marine is being recognised alongside other established players in the market. It has recently secured a S$1.16 million contract to provide marine logistics services amidst a tough and challenging year for independent tug and barge operators following the US and European crisis.

Az Marine will continue to pursue its long-term growth strategy, manoeuvre out of current down market and position itself to capitalise on market opportunity.

Az Marine currently owns a sizable fleet of vessels which will allow it to compete effectively. The 22 vessels include 11 tugs ranging from 2200BHP to 3600BHP, 9 barges between 300ft to 365ft, 1 crane barge and 1 support vessel.

Az Marine was also accorded an interim International Safety Management (ISM) Code Certification by Bureau Veritas Singapore. The ISM Code is an international standard for the safe management and operation of ships and for pollution prevention.