May 31, 2005
Keppel Singmarine buys Chinese yard
Keppel Singmarine Pte Ltd (Keppel Singmarine), a wholly owned subsidiary of Singapore's Keppel Offshore & Marine Ltd (Keppel O&M), the offshore and marine arm of Keppel Corporation Limited, has entered into an agreement to acquire an existing shipyard in Nantong, China.
The facility will be named Keppel Nantong Shipyard, and is expected to be operational by third quarter of 2005. Its principal activities will be in the engineering and construction of vessels such as Anchor Handling Tug/Supply (AHTS) vessels and tugboats.
Total consideration for the assets is RMB 45 million (US$5.4 million) in cash which was arrived at on a willing buyer and willing seller basis, at a discount to the latest available valuation of the assets commissioned on behalf of the sellers. An advance payment of RMB 3 million will be made following the signing of the agreement and the balance will be paid after obtaining approvals from relevant authorities.
Mr Charles Foo, Chairman of Keppel Singmarine and Managing Director/Special Projects of Keppel O&M, said, "Keppel Nantong Shipyard will boost our newbuilding capacity to meet increasing demand for specialised vessels to serve the offshore field development market and growth in LNG terminals and maritime ports.
"Nantong has a skilled marine workforce. With good management and effective project control, we are confident that Keppel Nantong Shipyard will build on Keppel O&M's brand equity of a Can Do! attitude, delivering quality products and services on time and within budget."
Keppel Nantong Shipyard is located along the Yangtze River, within close proximity to supporting industries in the Municipality of Nantong, 100 km north-west of Shanghai.