With the lease on its Tuas Shipyard (above) expiring in 2024, ST Engineering has acquired Keppel’s Gul Road shipyard
After disposing of its U.S. shipyards in a $15 million take care of Bollinger Shipyards final November, Singapore’s ST Engineering is spending SGD 95 million (about US$72 million) to accumulate a yard on its residence turf.
ST Engineering’s marine enterprise has acquired the positioning and belongings of the Keppel O&M shipyard at 55 Gul Road, Singapore, for its industrial ship restore enterprise. The belongings acquired embody three floating docks, current buildings, workshops, and equipment.
The new Gul yard replaces ST Engineering’s Tuas shipyard, as its lease will expire on the finish of 2024.
The firm says that the asset buy obviates the necessity to construct a greenfield shipyard, which might require a lot greater building and materials prices in addition to lead time.
The roughly 141,000 sq. meter Gul yard, with a gross constructed up ground space of 74,593 sq. meters, has a remaining lease till August 2030 which might be prolonged by one other 20 years. ST Engineering has one other shipyard at Benoi which is especially for shipbuilding.
SMART SHIPYARD
The group says its ship restore enterprise in Singapore has carried out nicely and has been worthwhile through the years and continues to develop. To keep its competitiveness within the ship restore section, the Gul yard might be progressively upgraded to be a sensible shipyard, adopting end-to-end digitalization that can energy the ship restore cycle and processes. The new Gul yard may also be used to help the group’s different marine segments, equivalent to module fabrication and offshore renewable tasks.
“Taking over this brownfield site versus constructing a replacement greenfield site is an effective way to minimize capex. More importantly, building on the existing infrastructure and facility enables us to start operating immediately and effectively with minimal disruption to our operations,” stated Ng Sing Chan, president, marine, at ST Engineering.
