Malaysia’s TAS Offshore enters JV with Chinese businessman
- Business & Finance
Malaysia’s TAS Offshore (TAS) has through its subsidiary TA Ventures entered into a Joint Venture deal with Chinese businessman Chan Baihang to build and sell offshore support vessels.
Under the agreement TA Ventures will pay 60 percent and Chan Baihan will provide the remaining 40 percent for the vessels construction. The proceeds from the sale of the vessels, upon their delivery, will be distributed 60-40% in favor of TA Ventures.
The estimated total investment of the Joint Venture is around $37.6 million.
TAS Group, engaged in the shipbuilding and ship repairing activities in Malaysia, has adopted a ‘built to stock’ approach when it comes to vessels construction and, the company explains, this JV will help it to move faster in this direction and at the same time minimise the risk exposure to this operation.
“Built-to-stock operation results in shorter delivery period for the prospective buyers. The JV will enable TAS to move further and faster in this operation mode. The vessels concerned are in demand by the oil and gas industry and thus, we foresee a good prospect for this JV,” TAS has said in a Bursa Malaysia filing.
Built to stock approach is a build-ahead production approach in which vessels production plans are based on sales predictions and/or historical demand.
Chan Baihang, a businessman from Guangdong, China owns transportation companies, construction firm, and is also involved with both chartering and building for sale of offshore vessels, TAS Offshore says.
Offshore Energy Today Staff, September 22, 2014