"We believe that organizations need to be economically sustainable before they can address environmental, social, and governance factors effectively."

Melvin Tan

MANAGING DIRECTOR, CYCLECT GROUP

October 13, 2023

Could you introduce Cyclect Group?

Founded in 1943, Cyclect Group (Cyclect) is marking its 80th anniversary this year. Today, it has evolved significantly from a service provider focusing on maintenance, repair, and operations to a diverse organization with five main business groups across nine countries.

Firstly, we have an engineering and construction business that includes services in electrical, mechanical, instrumentation, controls, and automation, for the industrial and infrastructure sectors. This business has contributed to projects such as Marina Bay Sands and Gardens by the Bay in Singapore. Our second area is maintenance, repair, and overhaul, or technical services, where we provide plant maintenance and equipment repair to extend the life of machinery, especially for the chemical industry. The third area is facility management; we manage facilities, taking care of everything from cleanliness to optimizing facility operations. Our fourth business area is distribution and trading, where we promote a range of industrial technologies and provide integration services, including process control, safety equipment, and cybersecurity services for plant operators. Lastly, we are gradually transitioning towards project development, focusing on power plants, data centers, waste-to-energy projects, and renewables.

Could you share recent updates and developments with Cyclect?

As part of our geographical expansion, we are opening a factory in Saudi Arabia, and expanding our Indonesia factories. Additionally, we have acquired a company called Nismix, which provides mixing solutions for the chemical industry.

We are also focusing on the smaller specialty chemical players, providing them with turnkey solutions - from engineering and design processes to providing all the technology and equipment. Further on, in project development, we have a 50-megawatt solar power project in Bangladesh and a 200MW carbon-neutral data center project in Kuching. Despite these being a bit different from our traditional business, they complement our core skill sets.

How are Cyclect and the local chemical industry approaching Industry 4.0?

Firstly, we see ourselves as service providers for digitalization with internal and external focus areas. Internally, since we are not engaged in mass manufacturing but in custom manufacturing, our emphasis on Industry 4.0 is different. We have initiated projects on generator servicing and electric motor management, focusing on measuring throughput and energy consumption of machinery, enabling efficient operation and energy conservation. However, our greatest impact is in assisting our customers. Our Nismix system, for instance, is a fully automated Industry 4.0-ready system designed to streamline and automate industrial mixing processes significantly, resulting in productivity gains exceeding 50%.

Cyclect harnesses the power of AI to deploy platforms enriched with analytical capabilities. These platforms analyze entire plants and buildings, orchestrating comprehensive energy and smart device management strategies. Additionally, we are investing in cybersecurity through a company called BData. BData’s system uses distributed ledger technology to authenticate devices, ensuring a secure environment as companies venture into the digital domain. We want to provide not only cutting-edge solutions but also the safety and sustainability assurances necessary for their successful deployment. With each cybersecurity breach, a company's productivity, reputation, and physical safety could be compromised. This is something we are acutely aware of and intend to address effectively.

In my view, semiconductor and pharmaceutical companies are the most advanced when it comes to Industry 4.0 adoption. Chemical companies face unique challenges - high hazard potential, significant capital expenditures, and a lag due to historical market conditions, such as low oil prices. While there are industry leaders like Shell that are advancing, there are also laggards who are slower to adopt new technologies. Industries like semiconductors are far more advanced, with significant data gathering, performance prediction, and energy consumption tracking. Older manufacturers may need more time to fully embrace Industry 4.0.

What is your vision for Cyclect in the coming years?

Our goal is to be a trusted partner for our clients, acting as a one-stop solution for everything from office to plant equipment and services. We want to help clients focus on their core services and production by supporting their non-essential operations. As part of our future aspirations, we also want to partner with more organizations and assist them in their sustainability journeys. Furthermore, our approach to sustainability is more comprehensive and includes the economic component. We believe that organizations need to be economically sustainable before they can address environmental, social, and governance factors effectively. In summary, our vision for Cyclect is to be a dynamic, client-focused, and innovative partner and be continuously evolving to meet the changing demands of industries, while maintaining a strong commitment to sustainability and business viability.

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