SINGAPORE (April 7): KTL Global, which makes steel-wire ropes used by offshore and marine companies, is increasing its headcount in the Middle East, expanding its sales network in China, and moving most of its production in Singapore to Malaysia.

The changes come amid an increasingly tougher operating environment for offshore and marine companies following the sharp fall in oil prices over the past few quarters.

"While the specialized rope and rigging sub-sector has been relatively stable, the directors believe the change in market dynamics has presented an opportunity to review practices and seize fresh opportunities," KTL CEO Tan Kheng Yeow said in a statement today.

The company has a facility in the United Arab Emirates producing heavy-lift slings, synthetic wire ropes, and general slings. The plant is the biggest of its kind in the Middle East, where KTL intends to expand its 44-member team to 55 within a year.

One of KTL's goals is to position its Middle East operation, which contributed $9 million to its 2014 revenue, as a hub to target Europe. It expects revenue from the Middle East to increase 40% this year.

At the same time, the company will set up four sales representative offices in China's coastal cities to tap rising demand for its products.

KTL owns a 40%-stake in a joint venture in China that operates within the Nantong Comprehensive Bonded Zone in Jiangsu province.

The joint venture is setting up a rigging shop, targeted to be completed in October, to produce general and heavy-lift wire rope slings. It is also building a 300,000-sq-ft facility in Nantong scheduled to be ready by December.

"Increasingly, oil and gas companies in China prefer to work with integrated providers who offer rope and rigging products as well as services," Tan said.

"The latter is currently lacking in the rope and rigging market in China, which is fragmented and behind Western markets in adoption of servicing and certification aspects of this sub-sector."

To better manage labour costs, KTL will move the bulk of its production in Singapore to Johor, where its rigging facility is slated to be fully operational by the end of the year.

Spread across 217,800 sq ft of industrial land, the facility is the largest of its kind in Malaysia. KTL intends to increase its headcount in Malaysia to 50 from 18 by December.

Its facility in Singapore will be leased out.

KTL Global shares rose 3.4% to 18.5 cents yesterday.