ST Engineering’s Marine business has acquired the site and assets of an existing shipyard in Singapore at 55 Gul Road from Keppel FELS for $95m for its commercial ship repair business, according to the company's release.
The assets acquired include three floating docks, existing buildings, workshops, and machinery. This asset purchase obviates the need to build a greenfield shipyard, which would require much higher construction and material costs as well as lead time. The new Gul yard replaces ST Engineering’s Tuas shipyard, as its lease will expire at the end of 2024.
The approximately 141,000 sqm Gul yard, with a gross built up floor area of 74,593 sqm, has a remaining lease until August 2030 which can be extended by another 20 years. ST Engineering has another shipyard at Benoi which is mainly for shipbuilding.
The Group’s ship repair business in Singapore has performed well and has been profitable over the years and continues to grow. To maintain its competitiveness in the ship repair segment, the Gul yard will be progressively upgraded to be a smart shipyard, adopting end-to-end digitalisation that will power the ship repair cycle and processes. The new Gul yard will also be used to support the Group’s other marine segments, such as module fabrication and offshore renewable projects.