SINGAPORE - Surbana Jurong Private Limited - the newly merged entity combining Surbana International Consultants and Jurong International Holdings - announced on Monday the acquisition of two companies to bolster its capabilities and market access to Asia's booming infrastructure sector.
The acquisitions of KTP Consultants in Singapore and Sinosun Architects & Engineers in China will also expand Surbana Jurong's staff strength from 3,200 to 4,000 people, the firm's chairman Mr Liew Mun Leong said.
"We are underway to build our staffing strength to 6,000 people within the next three to five years," Mr Liew noted, adding that Surbana Jurong will grow its annual revenue from S$500 million currently to potentially S$1.5 billion in the same time frame.
The acquisitions followed the formal completion of the Surbana-Jurong merger on June 9. First announced in February, the merger aimed to combine the two firms' expertise and market share to form one of Asia's powerhouses in infrastructural and urban development.
Global infrastructure spending is projected to grow from S$4 trillion annually in 2012 to over S$9 trillion by 2025, with Asia Pacific accounting of 60 per cent of the market, chief executive Wong Heang Fine said as he underlined Surbana Jurong's robust outlook in the region.
"To achieve that potential, we have been on the look out since last year for companies globally that can add expertise and market share to our company. We are still in this M&A phase, and there's no limit to the amount that we are willing to spend as long as it fits our growth strategies," Mr Wong said.
Reflecting that approach, the newly acquired Sinosun is one of China's top 20 architectural firms. Its class A architectural design license and extensive network in the country will grow Surbana Jurong's footprint in China from nine to 16 cities while removing limitations on projects that it can bid for.
Singapore's KTP is a regionally established multi-disciplinary engineering firm, which can help Surbana Jurong unlock the markets in Malaysia and Indonesia.
Upcoming M&As will likely focus on adding expertise in rock caving and tunneling among other areas, Mr Liew said.
"In recent weeks I had been in Japan and Scandanavia looking for companies to acquire... We could've done more than just the two acquisitions announced today," he added.