Swiber Acquires North Shipyard in Singapore
Swiber Holdings, a niche service provider to the offshore oil and gas industry, is making its first strategic acquisition since its' listing on the Singapore Exchange in November 2006.
Swiber has acquired 100% issued share capital of North Shipyard (Pte) for S$10.3 million. The acquisition is paid in cash financed through the Company’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 meter water frontage shipyard comprises of a two story main building and a single story workshop with three-story office annex. The facilities of the shipyard also includes 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. At the same time, the site will also be utilize 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. 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,” said Mr Raymond Goh, Swiber’s Executive Chairman and Chief Executive Officer.
Swiber currently owns and/or operates a fleet of 20 vessels comprising nine tugboats, nine barges, one crane barge (Dalihao) and one jack up barge. In addition, 12 vessels, comprising 11 tugs and one pipelay barge, are currently under construction/conversion. In outlining its growth strategy, Swiber plans to expand its existing number and spread of vessels to include both offshore support and construction vessels.
Adding another exciting 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, 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.”
Summarizing the rationale for the acquisition, Mr Goh said, “This acquisition is a strategic move by Swiber to gear up for sustainable long-term growth. With the considerable business synergies that will arise from the acquisition, we believe that Swiber can enhance our value chain, boost our portfolio of services, and ultimately take us a step closer to becoming a top-notch offshore oil and gas specialist.”
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