HS Quarry (JV) Sdn Bhd

Strategic Focus

Vision
We strive to be biggest and best manage quarry contractor in Northern Peninsular Malaysia.

Business Objective
The objective of business is to maximize productivity of quarry and minimize environment impact to the surrounding area.

Company’s Philosophy and Concept
  1. Client requirement is our priority.
  2. By giving full cooperation to client management teams to ensure smooth quarry operation.
  3. Promote team work among employee including sub-contractors.
  4. Place utmost important in safety and welfare of employee including sub-contractors.
  5. Purchase materials and spare parts from legal suppliers.
  6. All blasting works must be planned and implemented with approval from client Quarry Manager.
  7. Minimize impact of quarry operation to the surrounding residence: - Dust, Vibration, Air Blast and Fly rock.

Business Profile

Name and description of the business
The company will trade under business name of HS Quarry (JV) Sdn. Bhd.

HS Quarry (JV) Sdn. Bhd. is a quarry contractor set up in February 2007. HS Quarry (JV) Sdn. Bhd. is a holding company currently operates three granite quarries located at Bukit Tambun (Cemex Aggregate (Penang) Sdn. Bhd.), Penanti (Hanson Quary Products Sdn. Bhd.), Juru (Juru Quarry Sdn. Bhd.), operate a limestone quarry at Chupping (Cimaco Quarry Sdn. Bhd.) and operate 2 mobile Jaw Crushers at Teluk Kumbar housing project.

HS Quarry has a total of 6 addresses, which is one main office and five site office. The main office is located at 4863, Mak Mandin Industrial Estate, Jalan Permatang Pauh, 13400 Butterworth, Penang. Whereas the five site office is located at respective Quarry site.

Normally, HS Quarry operated from Monday to Saturday, 8.00 a.m. to 6 p.m. and maintenance on Sunday.

Bukit Tambun Quarry
Cemex Aggregate (Penang)
Sdn. Bhd.

Penanti Quarry
Hanson Quarry Products
Sdn Bhd.

Juru Quarry
Juru Quarry Sdn Bhd.

Chupping Quarry
Cimaco Quarry Sdn. Bhd.

Teluk Kumbar
Housing Project
         
         
Nature of the business
HS Quarry (JV) Sdn. Bhd. specialized in quarry contract which involves all aspects of quarry operation. Services provided are quarry face development, earth removal, quarry and project blasting, quarry face loading and hauling, crushing and screening, crushing modification and upgrading, sale’s loading and sale’s of quarry products.

Ownership structure
This business is operated as a small company by two shareholders of the company. HS Quarry (JV) Sdn. Bhd. operated as a small private limited company. It has two shareholders with limited liability. The administration of the company is managed by director Mr. Chiu Chee Wai ( B.Adm and B.Soc.Sc (Eco)) while the quarry operation is managed by director Mr. Ho Sze Lim ( B.Eng (Hons) ).

Business History
HS Quarry (JV) is currently having a total work force of 60 workers and 6 sub-contractors.
  • 1st Oct 2008 : Bukit Tambun Quarry (Cemex Aggregate (Penang) S/B)
  • 26th Sep 2009 : Chuping Quarry (Cimaco Quarry Sdn. Bhd)
  • 4th Mar 2010 : Teluk Kumbar (Housing Project)
  • 1st Jul 2010 : Penanti Quarry (Hanson Quarry Products S/B)
  • 1st March 2012 : Juru Quarry (Juru Quarry S/B)

Entry Requirements
The business is started up as a new operation. The reason for starting up as a new business is because expected big demand for Quarry Products due to major development project in Penang such as railway double tracking by MMC and Gamuda and second Penang bridge by UEM and China Harbour.

Legal Requirements
HS Quarry (JV) Sdn. Bhd. needs to be registered with the Register of Companies (ROC) before starting a business. Company director requirements should be at least 2 Malaysian citizens must be at least 18 years old and not a bankrupt and permanent residential address must be in Malaysia. The list of companies can be searched by the use of www.roc.gov.bd. Website address.

After that, HS Quarry (JV) Sdn. Bhd. need to obtained license from Municipal Council of Seberang Perai (MPSP) before operating a business.

HS Quarry (JV) Sdn. Bhd. also need to be registered in the Inland Revenue Board of Malaysia for the payment of income tax by installments.

HS Quarry (JV) Sdn. Bhd. also needs to be registered with Department of Safety and Health (DOSH), Jabatan Bekalan Elektrik (JBE), Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna for Diesel storage Permit. Jabatan Bomba dan Penyelamat for diesel and explosive storage.

Quarry face development and rock extraction required Earth work plan approved by Municipal council of Seberang Perai (MPSP). Yearly Permit 4C for rock and earth are required to obtained from the land office, while the yearly blast design approval and Permit 168A for transporting explosive is obtained from Jabatan Mineral dan Geosains Malaysia (JMG)

The table below shows a summary of legal Requirements of HS Quarry:
The legal requirements of the business are:
  • Company registration
  • MPSP Business licence
  • Register with Inland Revenue Board of Malaysia
  • Register with Department of safety and Health (DOSH)
  • Register with Jabatan Bekalan Elektrik (JBE)
  • Diesel storage Permit from Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna
  • Approval from Jabatan Bomba dan Penyelamat for diesel and Explosive storage
  • Earth work plan approved from Majilis Perbandaran Seberang Perai (MPSP)
  • Permit 4C from land office.
  • Yearly blast design from Jabatan Mineral dan Geosains (JMG)
  • Monthly blasting and purchasing explosive permit from police
  • Yearly blasting and transporting explosive permit (168A) from Jabatan Mineral dan Geosains (JMG)
  • Short-firer licence from police and Jabatan Mineral dan Geosains (JMG)
Marketing

Market Analysis
Research and analysis of the general business environment identifies the opportunities and challenges for the business in the next three years.

Economy Factors
For the economy factor, most of the businesses are affected by the general level of economic or business activity which fluctuates from booms to recessions.

Currently, construction sector decline by 1.6% for the forth quarter 2008, demand for the quarry aggregate had also drop by 20%. Expected demand of quarry aggregate will increase by second quarter of 2009 due to commencement of second Penang Bridge Project and our government second stimulus package to stimulate our economy.

Natural Factors
HS Quarry (JV) Sdn. Bhd. is a type of primary production businesses where they need to consider natural factors such as weather patterns and climatic changes.

Production

Production Objectives
In every manufacturing operation, a production function exists. The process of transforming raw material into final products for sale is known as production. Maximize output should be the management aim for the production function of an operation. While the main production objective, therefore, should be expressed as a measurable quality of output volume, that is, output units which should be consistent with the sales objectives for marketing.

Production capacity
The production capacity of the operation is determined to begin the production planning. The production capacity is established by factory plant and equipment where to achieve output targets for the period, the production capacity must be enough.

To have enough production capacity, HS Quarry (JV) Sdn. Bhd. uses various machines with its own function to produce their product. Machines such as Air Compressor and Pneumatic Crawler Drill, Excavator, Hydraulic Breaker, Hydraulic Crawler Drill and Wheel Loader are used by the workers in the quarry.

In quarry businesses, the production capacity is determined by a few factors. One of the factors is anticipated demand of quarry products from surrounding construction projects within a distance of 100 km. The second factor is estimated rock reserve to be extracted from the hill. The third factor is the operation hours allow by Land Office and other government agency. The forth and last factor is the cost of investment on the crushing plant.

Production Description
Quarry Face Development
Clear overburden and prepare area for drilling and blasting.
 
Drilling, Blasting and secondary breaking
Drilling, Blasting and secondary Breaking.
 
Quarry Face Loading and Hauling
Loading blasted material and transport to crushing and screening plant.
 
Crushing and screening
Crushed blasted material to the required quarry products.
 
Sales Loading and Stock Pile Handling
Sale’s loading of quarry products and manages stock pile.
                 
                 
                 
Typical Quarry Operation.

Bukit Tambun Quarry (Cemex Aggregate (Peneng) Sdn. Bhd.)

Production Capacity 300t/h consists of following crushing plant machines:
   
No. of unit
a) Primary Jaw Crusher: Nordberg C 125
1
b) Secondary Cone Crusher: Nordberg GP200S
1
c) Tertiary Cone Crusher: Jaques G 50 Cone Crusher
1
d) 5’ X 12’ vibrating screen
1
e) 8’ X 20’ Vibrating screen
1
f) Vibrating Feeder
1
g) Pan Feeder
2
h) Belt Feeder
1
i) Conveyor Belt
16
     
     
Mobile Machinery List
No. of units
a) Komatsu PC450-6 Excavator
2
b) Caterpillar E 330B Excavator and Hydraulic Breaker
1
c) Caterpillar E 330A Excavator
1
d) Kobelco Sk07 Excavator
1
e) Atlas copco CM 580 Hydraulic Crawler Drill
1
f) Caterpillar 950 wheel loader
1
g) Caterpillar 966 wheel loader
1
h) Dumpers
5
i) Watering Truck
1
     
     

Bukit Tambun Quarry Crushing Plant Flow Chart.
Output levels
Output targets must be closely coordinated with marketing strategies and forecast. Planned monthly output should be consisted with varying seasonal demand. Increase production output before peak seasonal demand periods to ensure supply is available for the anticipated high demand.

Increase production output before peak seasonal demand also must take into consideration of stock pile area for unsold quarry products, contamination of quarry products and additional cost of stock pile handling.

Production Method
HS Quarry (JV) Sdn. Bhd. used a continuous production method. With continuous or repetitive production flow to make standardized final products according to BS 882 standard:

Major Quarry Products:
  1. Crushing-run
  2. 20mm aggregate (3/4”)
  3. 40mm aggregate (1 ½”)
  4. 10mm aggregate (3/8”)
  5. Quarry dust
  6. Quarry Waste

Output quantities will depend on orders received and special quarry products can be produce if the order quantity is large.

Production quality Controls
HS Quarry (JV) Sdn. Bhd. needs to ensure a high quality product to ensure the final product meet the BS 882 standard. To ensure final quarry product quality, HS quarry (JV) should make a regular inspection and maintenance for all the crushing plant equipment such as crushers and screen mesh, quarry face development to ensure no contamination of overburden earth on rock face.

HS Quarry (JV) Sdn. Bhd. also should supervising production employees and regular evaluating their job performance so that there is sense of responsibilities to ensure good quality quarry products.

HS Quarry (JV) Sdn. Bhd. should also adopt highest safety standard and to ensure zero-accident in the quarry.

HS Quarry (JV) adopts environment protection safeguards in the blasting and crushing production process and always tries to minimize pollution.

HS Quarry (JV) also carrying out weekly quality checks of final products to ensure if meet the BS 882 international standard used in construction industry.

Quarry Products

6 X 9 Block

10mm Aggregate

20mm Aggregate

40mm Aggregate
       

Crusher-Run

Quarry Dust

Quarry Waste
 
       
       
 
Name
Function
Air Compressor & Pneumatic Crawler Drill
Drilling 3 ½ -inch hole for blasting process
Excavator(30t) & Dumper
Excavator:
Loading blasted material

Dumper:
Transport blasted material to crushing plant
Hydraulic Crawler Drill
Drilling 3 ½ -inch hole for blasting process
Hydraulic Breaker
Breaking over- size rocks
Wheel Loader
Sales loading
Excavator(20t)
Manage surge-pile