ASL Marine Buys Miclyn’s Shipyard in Batam, Indonesia
- Business & Finance
ASL Marine is expanding its shipbuilding and ship repair capability and capacity with the acquisition of a shipyard in Batam, Indonesia.
The company has through its wholly-owned subsidiary, PT. Sukses Shipyard Indonesia, entered into a conditional sale and purchase agreement with Miclyn Express Offshore Limited and its wholly-owned subsidiary, PT Loh & Loh Construction Indonesia, pursuant to which ASL has agreed to acquire the Miclyn-owned shipyard in Batam, for the cash consideration of US$20.0 million.
The shipyard operates on the land located at Jalan Brigjen Katamso Km. 19 Tanjung Uncang Batam, Indonesia, being adjacent to the Group’s existing shipyard in Batam. It is located in a free trade zone with industrial areas designated specifically for shipyards with infrastructure such as roads, telecommunications, utilities and supporting services.
The shipyard comprises a site of 12.2 hectares with berthing, repair quays of 220 metres, 2 ship repair slips, launch-ways and shipyard facilities (office building, fabrication shop, and machineries) which cater for shipbuilding, vessels repair, modification and mobilisation, as well as modular fabrication services.
The seller, MEO, is headquartered in Singapore and is a leading provider of offshore vessel services. It operates a range of offshore support vessels, crew/utility vessels, tugs and barges for customers in the offshore oil and gas industry across South-East Asia, Australia and the Middle East.
“The proposed acquisition is in line with the overall strategy of the Group to strengthen and expand its shipbuilding and ship repair capability and capacity. In view of the water-front land and the close proximity of the Sale Assets to the Group’s existing premise in Batam, the proposed acquisition will provide a good opportunity for the Group to expand its capacity and berthing space to support the growing demand for ship repair and upgrading of ships and other floating structures from the marine and offshore sector. The additional shipyard will also supplement the revenue stream of the Group, as well as strengthen its ability to serve customers in the South Asia region,” ASL said in a press release.
January 27, 2014; Image: MEO