ST Engineering’s Marine business has paid US$95 million to Keppel FELS to acquire the property and assets of an existing shipyard at 55 Gul Road in Singapore for its commercial ship repair business.
The assets acquired include three floating docks, existing buildings, workshops, and machinery.
ST Engineering’s Tuas shipyard will be replaced by the new Gul yard when its lease expires at the end of 2024.
The about 141,000 m² Gul yard, with a gross built-up floor space of 74,593 m², has a lease that expires in August 2030 and may be extended for another 20 years. ST Engineering also has a shipyard in Benoi, Singapore mostly for shipbuilding.
“Taking over this brownfield site versus constructing a replacement greenfield site is an effective way to minimise Capital Expenditure (CapEx),” stated Ng Sing Chan, president of ST Engineering’s Marine busines.
He added that “More importantly, building on the existing infrastructure and facility enables us to start operating immediately and effectively with minimal disruption to our operations.”
