Tri-Star Industries is a market leader in Asia Pacific for oil and gas component manufacturing, focused on corrosion-resistant products, primarily fasteners. Established in 1979 in Singapore, Tri-Star currently operates in Southeast Asia, Australia, China, the Middle East and the US. Its product offerings are sold under well-respected brands such as MASTERCOTE, TRISTAR and DIMET. With its excellent track record and high service levels, Tri-Star serves a diverse blue-chip customer base made up of national and international oil companies and oil and gas EPC contractors.
- Oil and gas exploration and production (“E&P”) spend directly correlates with spend on corrosion-resistant components that Tri-Star makes
- Global annual E&P spend was expected to grow 8% per annum from 2013 to 2017, reaching US$ 912 billion by 2017
- 50% of global E&P spend remains in Asia Pacific and Latin America (expected to grow to become 53% of total offshore spend by 2017)
- Offshore E&P capex was expected to remain robust through 2020, primarily in Asia and Brazil
- Designed and implemented new organisational structure to better align management with business objectives
- Invested in new product development, focused on fasteners, bolt tensioning tools, and sub-brand of fasteners
- Supported cost reduction initiatives in light of oil price decline, including shutdown of inefficient operation sites as well as divestment of assets
- Enhanced operations at key manufacturing plant in Johor Bahru, increasing throughput to 12 tonnes a day and reducing lead times from 28 days to 4 days
Tri-Star has been impacted by the significant decline in oil prices, commencing in H2 2015. As O&G customers continue to cancel and delay projects amidst the sustained depressed global oil price environment, Tri-Star is focused on maintaining revenues in a tight competition for a smaller pool of jobs. The company has begun to actively diversify sales into other industry verticals as well as aggressive cost cutting measures, right-sizing, and intensifying efforts to collect unpaid receivables.