August 6, 2007
Singapore's Swiber buys shipyard
Swiber Holdings Limited today announced that it has acquired 100% issued share capital of North Shipyard (Pte) Ltd for S$10.3 million (US $6,8 million).
Swiber describes itself as a "niche service provider" to the offshore industry and is an integrated offshore Engineering, Procurement, Construction, Installation and Commission ("EPCIC") contractor with supporting in-house offshore marine capabilities.
North Shipyard is its first strategic acquisition since listing on the Singapore Exchange in November 2006. It has been paid in cash financed through the Swiber's internal resources.
North Shipyard is a 2.4 hectare shipyard situated in Tuas Crescent, Singapore, with an experienced management team and workforce of approximately 90 men.
The 124 m water frontage yard has a two storey main building and a single storey workshop with three-storey office annex. Facilities include a slipway, wharf and working yard.
The shipyard will primarily serve as a marine base to support the repair and maintenance ("R&M") work for Swiber's growing fleet of marine support and construction vessels. The site will also be utilized as a base for the conversion and construction of vessels.
"With the acquisition of North Shipyard, Swiber achieves vertical integration by extending our capability to include R&M and conversion and construction of vessels," said Mr Raymond Goh, Swiber's Executive Chairman and CEO. "Having control over our own marine base insures our vessels against any possible downtime while improving logistical efficiency. All these translate into greater control over project coordination."
Swiber currently owns and/or operates a fleet of 20 vessels made up of nine tug boats, nine barges, one crane barge (Dalihao) and one jack up barge. In addition, 11 tugs and one pipelay barge, are currently under construction or conversion.
Swiber plans to expand the number and mix of vessels to include both offshore support and construction vessels.
Adding another dimension to the acquisition, the shipyard will also be a base for Swiber to develop its in-house technical design capabilities.
"With the experience we have gained over the years," said Goh, "we see an increasing need to provide specialized vessels suitable for Asian oilfields in shallow waters. We are looking at moving up the value chain by designing and investing in these specialized vessels with advanced designs and technologies. North Shipyard would serve as a base for the conversion and construction of these specialized vessels."