Keppel Sells Singapore Ship Repair Business to ST Engineering
The Maritime Government
The realignment of the ship restore business in Singapore is continuing with the information that ST Engineering designs to obtain the property now operated by Keppel FELS. Keppel experienced beforehand announced its designs to refocus its operations absent from the offshore sector to execute its strategy to be an integrated organization focusing on sustainable urbanization, although ST Engineering will use the web-site to relocate and modernize its ship fix functions.


ST Engineering’s Maritime business has acquired the website and assets of the current shipyard in Singapore operated by Keppel FELS for S$95m (US$71.6 million). The belongings obtained include a few floating docks, current buildings, workshops, and equipment which will be employed for the company’s professional ship repair business enterprise.


Speaking about the deserves of the transaction, ST Engineering mentioned the group’s ship restore business enterprise in Singapore has performed effectively. They claimed it is profitable and continues to mature. At the exact time, Keppel introduced in April 2022 that it planned to reposition away from its offshore functions combining the organization unit with Sembcorp Maritime. The extended downturn in the offshore sector experienced resulted in money losses top to Keppel’s choice to focus on its actual estate, utility, information middle, telecom, finance, and logistics organization strains. In Oct 2022, the companies revised the terms of the megamerger to speed up Keppel’s programs to exit the ship repair service organizations.


ST Engineering said the acquisition will offer them with a place to relocate their existing ship mend operations which at this time function from a leased website that is thanks to expire in 2024. The GUL property obtained from Keppel will substitute ST Engineering’s Tuas shipyard but be in addition to the company’s Benoi shipyard which is mostly for shipbuilding.


The around 141,000 sqm Gul garden, with a gross created-up floor location of 74,593 sqm, has a remaining lease until August 2030 which ST Engineering highlights can also be prolonged by another 20 many years. According to the company the purchase of the existing shipyard “obviates the will need to make a greenfield shipyard,” which would demand a great deal increased construction and substance expenses as nicely as lead time.


“Taking above this brownfield site compared to constructing a substitute greenfield web-site is an productive way to decrease capex. More importantly, constructing on the existing infrastructure and facility enables us to begin functioning instantly and properly with small disruption to our operations,” said Mr. Ng Sing Chan, President of ST Engineering’s Maritime division.


To retain its competitiveness in the ship repair section, ST Engineering mentioned the Gul lawn will be progressively upgraded to be a intelligent shipyard, adopting stop-to-close digitalization that will energy the ship restore cycle and processes. The new Gul property will also be applied to help the group’s other marine segments, this sort of as module fabrication and offshore renewable tasks.


In November 2022, ST Engineering marketed its U.S. shipyard operations in an effort to decrease financial losses in the sector and focus on its successful small business in Asia. ST Engineering offered VT Halter Marine and ST Engineering Halter Maritime Offshore, which incorporated two active and two dormant shipyards all found in Mississippi. Bollinger, which bills alone as the most significant privately-owned and operated shipbuilder in the United States, said the acquisition was designed to consolidate its position serving equally the armed forces and industrial markets.

