Yongnam Holdings

Manpower costs in construction industry to go up by 10%: Yongnam

SINGAPORE : Manpower costs in the construction industry are set to rise by 10% over the next year, according to construction firm Yongnam Holdings. The company took on a S$100 million loan on Wednesday to finance its expansion plans.

ION Orchard is just one of several significant projects on Yongnam's list this year. To build its arsenal during this boom period, the company signed the S$100 million financing package with nine financial institutions on Wednesday. S$45 million will go towards refinancing existing loans.

Yongnam said about S$10 million to S$15 million will go towards funding its purchase of about 20,000 tonnes of steel struts, which are temporary support structures for construction and considered part of its capital equipment investment. If fully utilised, the 20,000 tonnes of steel struts can support a project of S$40 million.

Steel prices have been spiking, but Yongnam said it is unfazed. "In fact, the rising steel cost will benefit us on the strutting division, because we own more than 60,000 tonnes of steel now. If the steel price rises, we will have a competitive edge because the newcomer will have to pay more money," said Seow Soon Yong, CEO of Yongnam Holdings.

Yongnam, however, expects manpower costs to go up by 10% over the next year, due to the current shortage. The industry also faces price pressures in other raw materials during the boom.

However, it is positive about its earnings outlook, saying it expects revenue to jump by 50% year-on-year in the next two years.

Part of the latest loan will go towards funding the construction of a new fabrication factory at Nusajaya, Johor. "The factory is timely for us because of the buoyant Singapore market and the Middle East market.

We need to boost our capacity to go to the Middle East," said Seow. The Middle East will contribute 30% of Yongnam's revenue this year and next year, with the Dubai Metroline as one of its key projects.

荣南控股获1亿元融资配套

荣南控股(Yongnam)属下子公司荣南工程与建筑(Yongnam Engineering & Construction)获得1亿元的融资配套，其中包括6000万元可转让贷款(TLF)和4000万元的浮息票据(Floating Rate Notes)。

荣南工程与建筑和由九家本地和区域金融机构组成的联合组织达成了有关配套的协议。这些资金将用来再融资及购买钢架，还会当作运作资本。

集团表示，本地强劲的建筑业和中东地区为集团带来了兴隆的生意，这项融资配套及时地增强了集团的金融资源，来配合业务的强劲增长。

集团执行总裁萧孙镛说：“获得这项融资配套说明了金融界对我们集团、我们的策略和信誉抱有信心。有了这个配套，集团具备良好的条件来发掘新加坡、区域以及中东的商业机会，这有助于集团明年以及今后的发展。”

担任这一贷款的首要运作和账簿管理人之一是星展银行。负责新加坡企业银行业务的董事经理邱怡和表示，通过这项配套，荣南控股成功地获得银行和非银行市场的资助，投资者踊跃的反应预示着荣南控股今后的融资将会进展良好。

这项融资配套也获得了多家银行的支持，包括联昌国际银行集团(CIMB)、星金融发展(Sing Investment & Finance)、孟买印度银行(Bank of India)、印度银行(Indian Bank)等。