Keppel Nantong Clinches S$110 Million in Contracts

Keppel Nantong Shipyard, the wholly-owned subsidiary of Keppel Offshore & Marine, has clinched three contracts worth a total of S$110 million (RMB$550 million), including owner furnished equipment, to build eight tugs.

The first contract is secured from Smit Internationale Beheer B.V (SMIT) to build two 90-tonne bollard pull offshore support tugs. They will have anchor handling, diving support and fire fighting capabilities.

Delivery of these two vessels is expected in the first half of 2010. They will be deployed in West Africa.

The second and third contracts are awarded by Keppel Smit Towage Pte Ltd and Maju Maritime Pte Ltd. Each contract is for the construction of three 65-tonne bollard pull twin-screw Azimuth Stern Drive (ASD) tugs. They will be built in accordance to the MTD 3265ST design, developed by Keppel O&M’s technology unit, Marine Technology Development (MTD).

The vessels are expected to be progressively delivered in the year of 2011.

"With the eight new vessels, Keppel Nantong has an orderbook of 26 vessels currently under construction on our 16 hectare site," said Lee Tai Kwee, President of Keppel Nantong. "We are glad that our customers have confidence in the capability of this new yard, which is just under two years old."

Acquired by Keppel O&M in 2005, Keppel Nantong engages in the construction of specialized vessels such as offshore support vessels and tugboats. Located along the Chang Jiang River, it is about 110 kilometers northwest of Shanghai.