Keppel Singmarine acquires Nantong facility

Offshore staff

Keppel Singmarine Pte Ltd., a wholly owned subsidiary of Keppel Offshore & Marine Ltd, the offshore and marine arm of Keppel Corp. Ltd., has entered into an agreement to acquire an existing shipyard in Nantong, China. The shipyard will engineer and construct specialized vessels such as anchor handling tug/supply vessels and tugboats.

Total consideration for the deal is RMB 45 million in cash. After signing the agreement, Keppel Singmarine will make an advance payment of RMB 3 million. The balance will be paid after obtaining authorities approvals.

The facility will be named Keppel Nantong Shipyard and should be operational by 3Q 2005.

"Keppel Nantong Shipyard will boost our newbuilding capacity to meet increasing demand for specialized vessels to serve the offshore field development market and growth in LNG terminals and maritime ports," Mr Charles Foo, chairman of Keppel Singmarine and managing director/special projects of Keppel O&M, says

Keppel Nantong Shipyard is 100 km northwest of Shanghai along the Yangtze River and close to supporting industries in Nantong.

5/31/05