A Story of Growth and Resilience in Steel Fabrication
Eversendai Corporation Bhd, a specialist structural steel contractor headquartered in Malaysia, has become a leading name in the global steel fabrication industry. Founded in 1984 by Tan Sri AK Nathan Elumalay, the company has gone from a small-scale business in Malaysia to an international powerhouse. With a workforce of over 15,000 employees and a global presence across more than 18 countries, Eversendai has completed more than 500 projects, leaving its mark on some of the world's most iconic structures.
Founding and Early Years: The Humble Beginnings of Tan Sri AK Nathan
Tan Sri AK Nathan’s journey into the world of steel fabrication started with humble beginnings. Born into a modest family in Kepong, Kuala Lumpur, Nathan’s father was a newspaper vendor. Nathan’s early ambition to succeed was evident. After an unexpected return to Malaysia from his studies in Chennai, India, he worked for a printing press before deciding to venture into the construction industry.
Initially unfamiliar with construction and steel work, Nathan’s first significant project in the early 1980s involved providing temporary structural steelwork for the Dayabumi complex in Malaysia. The job involved about 400 metric tons of steel, a task which proved to be a steep learning curve for Nathan. He worked tirelessly on-site, learning the trade and navigating through challenges.
Despite not having formal engineering training, Nathan's desire for innovation and problem-solving helped Eversendai stand out in the construction sector. His ability to come up with new solutions for engineering challenges became one of the driving forces behind the company’s expansion.
Global Expansion and Iconic Projects
Eversendai’s expansion into the global market began in the late 1980s, spurred by the Malaysian economic crisis of the mid-1980s. With local projects drying up, Nathan ventured to Singapore in 1988 with little more than a relationship with Nippon Steel Corp. He quickly secured a major contract to erect the steel structure for Singapore’s Indoor Stadium.
This success in Singapore opened the door for more significant projects, including high-rise buildings. Eversendai’s first major high-rise project was the 37-storey Hitachi Tower in 1991, followed by the 66-storey Republic Plaza in Singapore. These projects helped solidify the company’s reputation for delivering complex and high-quality steel structures.
By the late 1990s, Eversendai took its talents to the Middle East, establishing a strong presence in Dubai. One of its earliest major projects in the region was the Burj Al Arab, one of the most luxurious and iconic hotels in the world. This project marked the beginning of Eversendai’s long-term success in the Middle East, which now remains one of its primary markets.
Eversendai’s portfolio of iconic projects includes landmark structures such as:
• Burj Khalifa (Dubai, UAE) – The tallest building in the world, a monumental achievement in engineering and design.
• Petronas Tower 2 (Kuala Lumpur, Malaysia) – The tallest twin towers in the world.
• Khalifa Olympic Stadium (Doha, Qatar) – A key venue for the 2022 FIFA World Cup.
• Kingdom Centre (Riyadh, Saudi Arabia) – One of the tallest buildings in the Middle East.
• Republic Plaza (Singapore) – One of Singapore’s tallest office buildings.
These projects have solidified Eversendai's position as a leader in the global steel fabrication industry.
Global Footprint and Expansion of Steel Fabrication Facilities
Eversendai operates seven state-of-the-art steel fabrication facilities worldwide, with significant expansions in key markets. The company’s facilities are strategically located in Malaysia, Singapore, Dubai, Sharjah, Ras Al Khaimah, Qatar, and India, enabling it to serve clients across the Middle East, Asia, and beyond.
The company’s steel fabrication facilities have an annual production capacity exceeding 200,000 metric tons, which allows Eversendai to undertake large-scale projects. The company’s strategic expansion has been integral in catering to the demands of high-profile projects across the globe.
Eversendai’s ability to handle high volumes of production while maintaining quality has been crucial to its success. The company’s capabilities include steel fabrication, welding, coating, and steel structure assembly. It has invested heavily in advanced technologies, machinery, and skilled manpower to ensure that its facilities remain competitive on a global scale.
Challenges and Financial Resilience
Like many companies, Eversendai faced numerous challenges, especially during periods of economic downturn. The Asian financial crisis of the late 1990s and the global financial crisis of 2008 put significant strain on the company’s operations. However, Eversendai’s leadership remained resilient, focusing on strategic markets like the Middle East and Singapore, which helped weather these storms.
For the financial year ending December 31, 2024, Eversendai reported a 47% decrease in net profit to RM14.1 million, on a turnover of RM1.24 billion, a 15% decrease from the previous year. Despite this decline, the company’s ability to remain in the black for two consecutive years after the COVID-19 pandemic is a testament to its resilience.
One of the ongoing challenges for Eversendai has been its stock performance. Despite its significant international operations, the company’s shares have consistently traded below RM1 since 2013, with little movement in price. Tan Sri AK Nathan has expressed his dissatisfaction with the stock price, noting that the company’s value should be higher given the quality of its work and the margins it captures. However, Nathan has plans to reduce his stake in the company, possibly down to 50%, in an effort to increase liquidity and create more market confidence.
The Future of Eversendai
Looking forward, Tan Sri AK Nathan is focused on maximising profits and continuing to deliver high-quality projects. Although he has discussed reducing his stake in Eversendai, his main priority remains ensuring the continued growth of the company and its ability to tackle the most challenging and complex projects in the industry.
As Eversendai expands its footprint and capabilities, the company remains committed to its mission of delivering innovative and high-quality steel solutions for infrastructure, industrial plants, high-rise buildings, and more. With its continued success in the Middle East and India, Eversendai is well-positioned for future growth in the global market.
Key Takeaways:
• Global Expansion: Eversendai operates steel fabrication facilities in Malaysia, Singapore, Dubai, Sharjah, Ras Al Khaimah, Qatar, and India.
• Impressive Capacity: The company boasts an annual steel fabrication capacity of over 200,000 metric tons.
• Iconic Projects: Eversendai has contributed to landmark structures like the Burj Khalifa, Petronas Tower 2, Khalifa Olympic Stadium, Kingdom Centre, and Republic Plaza.
• Overcoming Challenges: Despite facing economic crises, Eversendai expanded into the Middle East and Singapore, solidifying its position in global markets.
• Financial Performance: The company reported a 47% drop in net profit to RM14.1 million for FY24, on a turnover of RM1.24 billion, a decrease of 15%.
• Stock Market Performance: Eversendai’s stock has traded below RM1 since 2013, prompting plans to reduce Tan Sri Nathan’s stake to create liquidity.
• Future Focus: Eversendai’s leadership is focused on maximizing profits and delivering quality projects while addressing stock market performance.
