proeight gives seal of quality
Established companies that provide technology and equipment for all downstream and upstream activities.
Into this well-
You must be a very good international supplier.
A Malaysian company is facing the challenge.
Sdn Bhd is South-
East Asia is the only manufacturer of mechanical seals for the oil and gas industry.
To prevent leakage, these seals are installed on pumps and compressors.
Globally, a small number of wells meet the demand for mechanical seals
But ProEight, a relatively young Malaysian company that began designing mechanical seals in 2006, has set its sights on the elite group of manufacturers.
It claims its seal is better and cheaper.
Its general manager, Azhar Zainal Abidin, admitted that the company he founded was very small compared to industry giants like ours --
Headquartered in John Crane, the world\'s largest seal supplier.
\"They may be hundreds of times bigger than us and have been in the industry for a long time,\" Azhar said . \".
\"ProEight must be better in order to compete.
We cannot provide the same product as other products.
We need to do different things and do better in many aspects such as technology, pricing and delivery time, \"he said. Can it be done?
ProEight designed its seal cheaper and better, and Azhar believes ProEight is on track to make it bigger, the company said.
The company, which started in 1998, is a naval construction engineering consulting company for offshore oil and gas platforms.
Pipes are also designed and installed. (
Azhar holds first class honors in naval architecture at the University of Southampton, UK. )
He almost stumbled upon the business of making mechanical seals.
\"My consulting work has often taken me overseas, and this is the first time I have encountered mechanical seals and are aware of the commercial potential of these components,\" Azhar said . \".
He found that there are only a few major manufacturers of these seals, mainly in the United States and Europe, while in the South, no one
They are made or designed in East Asia.
\"It seems to be an ideal opportunity.
The only problem is that we don\'t have technology.
But Azhar was not intimidated.
He recalled how technology started.
Ups in Japan and South Korea use reverse engineering technology to quickly
Track the design and development process.
\"We decided to go this way.
We need to know about seals. The best way to learn is to take them apart and look inside.
\"So we started the seal repair business.
\"We have received some people who have experience in handling and installing seals, and we have opened a small repair shop mainly to better understand the seals,\" Azhar said . \". \"Guess what?
When we opened the seals, we found that it was not rocket science at all!
I knew we could do it right away.
\"The next step is to design our own seal,\" he said . \"
In this regard, Azhar expressed appreciation for the support of Petronas.
After preliminary testing, ProEight showed the prototype to Petronas.
In 2006, Petronas appointed ProEight as a supplier according to its supplier development plan (VDP)
For the design and manufacture of mechanical seals.
VDP supports local bumiputra in five aspects
Help them become competitive.
\"Petronas is a user of mechanical seals, so it is a huge learning experience to work with the company because of the input they give us.
We found the flaws in our design.
\"We tested the prototype after the prototype, and the company\'s demand for high standards also helped drive the design process,\" Azhar said . \".
\"Part of our research involves finding out what problems customers are having when using seals.
First, we found the seals very expensive.
Secondly, it took 10-
12 weeks for each mechanical seal order delivered by the manufacturer, and 4-
Refurbished parts will take 6 weeks to arrive.
This long lead time means that oil and gas operators have to store seals and parts as emergency supplies.
\"Our R & D (R&D)
Solve these problems directly.
This means that fewer seals are designed (
Azhar asked his engineers to design a seal consisting of 15 parts instead of 30 parts made by competitors)
Reduce the point of failure.
Reduced failure means reduced maintenance downtime and reduced maintenance costs.
\"We are also able to reduce the production time of certain components from a few days to a few hours,\" Azhar added . \".
After five years of development, ProEight launched ProSeal last year, and its first product wasin-
Malaysia mechanical sealing company, and launched the second generation of ProSeal products this year.
Foreign suppliers will sell mechanical seals for more than RMB, Azhar said, but ProEight is able to provide them with mechanical seals at a substantial discount, and \"still be able to generate substantial profits\"
However, he declined to disclose the price and profit margin.
Because ProEight uses the computer-
Auxiliary production method, can also provide the seal to the terminal
He said that users have the shortest lead time, sometimes no more than a day, but much faster than competitors.
\"Therefore, we only need to keep the stock of raw materials.
We don\'t need to keep the parts due to our speed, so it becomes cheaper to make the seals.
\"We will only make machines for our customers if they need them,\" he added . \".
\"We also offer free engineering services, so we are not only a part seller, but also a partner of our customers.
Our customers like to supply faster, the seal design is simpler, the use time is longer, and our customer\'s spare parts inventory drops to zero.
\"This releases much needed money and can be used for other things,\" Azhar said . \".
ProEight\'s future although the company listed shell and Murphy Oil among its customers, Petronas remains its largest customer to date, with the domestic market occupying its rm17
Revenue in 2011 5mil.
ProEight\'s target this year is to sell RM20mil and the revenue for the next few years is \"very secure\"
Convert all of its mechanical seals into annual contracts for seals produced by ProEight.
Last year, it was awarded the most promising supplier to petron (Product)
In recognition of its performance in VDP.
The challenge facing ProEight is to expand its customer base, says Azhar.
He said the global seal market is estimated to be $52, so the opportunity is huge.
He first targeted the ASEAN region and, starting with Thailand, he also focused on Middle Eastern countries such as Oman.
Another focus of the company is R & D.
\"To improve our products and design new products, we will invest up to 30% of our revenue in R & D,\" Azhar said.
This will ensure high sustainable development. tech business.
So far, ProEight has five invention patents related to mechanical seal design and production.
The goal of more than 30 engineers (
Staff of 130 people)
At least 12 patents are produced each year.
Azhar said: \"It\'s a tough order, but I believe it\'s achievable because ProEight\'s team of engineers\" has the freedom to fully reverse engineer, innovate, test, challenge traditional design and wisdom.
\"Not all designs work,\" Azhar said. \"Many designs fail during the testing phase, but he believes that failure is also important.
\"Most people are afraid of failure, but I think failure is an important tool, as long as we can learn from it and finally design a better product,\" he said . \".
Azhar added that the company\'s focus on research and development has enabled its engineers to design several machines to improve the production and renovation process and to improve testing capabilities.
\"We developed, for example-
He said: \"In the south, the first dynamic tester to be installed for mechanical sealsEast Asia.
\"ProEight is also looking at the possibility of expanding into related businesses such as the manufacture of pumps and dry gas seals.
\"There are undoubtedly many challenges ahead.
But we know what needs to be done.
We don\'t want to re-
\"The wheel was invented, but R & D was used to improve existing solutions and improve quality and production,\" Azhar said . \".
\"Technology is the key, and we have invested a lot in R & D.
\"Ultimately, the goal of ProEight is to become a global market leader.
\"It may take another 30 years, but this is our goal.
This can only be achieved through innovation and invention . \"
This article is part of a series of articles on companies that have achieved outstanding success through innovation and innovation.
The research in this paper is supported by the Ministry of International Trade and Industry to facilitate discussions on how companies can change and innovate to improve their competitive power.