Local shipbuilder, NGV Tech Sdn Bhd, will pay US$76 million to acquire a 66 per cent equity interest in South Korean shipbuilder, TKS Co Limited.
NGV Tech will purchase the equity from TKS's parent company, Kumkwang Engineering and Construction Group, in a deal which is scheduled to be inked tomorrow at the Langkawi International Maritime and Aerospace Exhibition 2009 (LIMA 09).
Its Executive Chairman, Zulkifli Shariff, said following the acquisition the local shipbuilder would be in control of a larger and deeper shipyard, modern shipbuilding equipment and have access to quality marine suppliers.
"Ultimately, the acquisition will enable NGV Tech to build bigger ships at competitive prices compared with the shipyard at Sijangkang, Teluk Panglima Garang, Selangor, which suffers from its remote location and absence of heavy lifting facilities," he told reporters here at the Mahsuri International Exhibition Center (MIEC).
TKS will become a subsidiary of NGV Tech, which will later be known as NGV Tech Shipbuilding Sdn Bhd, upon completion of the acquisition.
Zulkifli said following the acquisition, NGV Tech would be exposed to competitive and quality marine products from South Korea which would ultimately benefit its operations in Malaysia.
He added that NGV Tech would now be able to build ships of 200 meters in length either for the private sector or government.
The company recently informed the government of its intention and capability to supply Multi-Purpose Support Ships (MPSS) for the Royal Malaysian Navy.
Yesterday, Defence Minister Datuk Seri Ahmad Zahid Hamidi said the government planned to purchase at least three MPSS for the navy's operations.
Zulkifli said NGV Tech, 100 per cent locally-owned, had the latest technological know-how to build the support ships as stipulated by the government and the navy.
Zulkifli said the government should offer local companies, like NGV Tech, the opportunity to supply the Royal Malaysian Navy as its capabilities have been acknowledged by foreign navies and private customers.
"He said the government should look within the country for companies with such expertise. Why should the government look beyond the shores," he said.
Since it began operations in 1999, NGV Tech has built and delivered 120 ships for prominent clients which included Saudi Aramco, Shell, Exxon-Mobil, Petronas Carigali, Talisman and the China National Offshore Oil Corporation.
It has also built offshore patrol vessels for the navies of several Middle East countries.
NGV Tech will purchase the equity from TKS's parent company, Kumkwang Engineering and Construction Group, in a deal which is scheduled to be inked tomorrow at the Langkawi International Maritime and Aerospace Exhibition 2009 (LIMA 09).
Its Executive Chairman, Zulkifli Shariff, said following the acquisition the local shipbuilder would be in control of a larger and deeper shipyard, modern shipbuilding equipment and have access to quality marine suppliers.
"Ultimately, the acquisition will enable NGV Tech to build bigger ships at competitive prices compared with the shipyard at Sijangkang, Teluk Panglima Garang, Selangor, which suffers from its remote location and absence of heavy lifting facilities," he told reporters here at the Mahsuri International Exhibition Center (MIEC).
TKS will become a subsidiary of NGV Tech, which will later be known as NGV Tech Shipbuilding Sdn Bhd, upon completion of the acquisition.
Zulkifli said following the acquisition, NGV Tech would be exposed to competitive and quality marine products from South Korea which would ultimately benefit its operations in Malaysia.
He added that NGV Tech would now be able to build ships of 200 meters in length either for the private sector or government.
The company recently informed the government of its intention and capability to supply Multi-Purpose Support Ships (MPSS) for the Royal Malaysian Navy.
Yesterday, Defence Minister Datuk Seri Ahmad Zahid Hamidi said the government planned to purchase at least three MPSS for the navy's operations.
Zulkifli said NGV Tech, 100 per cent locally-owned, had the latest technological know-how to build the support ships as stipulated by the government and the navy.
Zulkifli said the government should offer local companies, like NGV Tech, the opportunity to supply the Royal Malaysian Navy as its capabilities have been acknowledged by foreign navies and private customers.
"He said the government should look within the country for companies with such expertise. Why should the government look beyond the shores," he said.
Since it began operations in 1999, NGV Tech has built and delivered 120 ships for prominent clients which included Saudi Aramco, Shell, Exxon-Mobil, Petronas Carigali, Talisman and the China National Offshore Oil Corporation.
It has also built offshore patrol vessels for the navies of several Middle East countries.
