Marine Log

April 25, 2006

Keppel FELS plans Indonesian fab yard

Singapore's Keppel FELS Limited (Keppel FELS) has entered into a joint venture agreement to establish Bintan Offshore Fabricators Pte Ltd (Bintan Offshore).

The joint venture has located a suitable site on the south-east coast of Bintan Island, Indonesia, for the fabrication facility, which is expected to cost about S$6 million (about US$3.7 million).

Keppel FELS holds 60% of the joint venture, with the balance held equally by two individual businessmen.

The principal business activity of Bintan Offshore is to undertake fabrication work for projects secured by Keppel FELS.

Mr Michael Chia, Executive Director of Keppel FELS, said, "This move to establish our own facilities is to ensure quality control and timeliness of project deliveries. These two factors are vital in our business. Bintan is close by, and control of work processes is therefore expected to be much easier."