ST Engineering buys Keppel yard
Singapore’s ST Engineering’s marine business has bought Keppel FELS’ Gul Road site and its assets for SGD 95 million. The deal includes three floating docks, existing buildings, workshops, and related machinery.
The site will replace ST Engineering’s Tuas facility where the lease expires at the end of 2024. It will also pave the way for the company to continue to expand its ship repair business.
“The approximately 141,000m2 Gul yard, with a gross built-up floor area of 74,593m2, has a remaining lease until August 2030 which can be extended by another 20 years,” ST Engineering explained. “The Group’s ship repair business in Singapore has performed well and has been profitable over the years and continues to grow,” it said.
Ng Sing Chan, president of the company’s marine business, commented: “Taking over this brownfield site versus constructing a replacement greenfield site is an effective way to minimise capex. More importantly, building on the existing infrastructure and facility enables us to start operating immediately and effectively with minimal disruption to our operations.”
ST Engineering plans to upgrade the facility to become a smart shipyard, adopting end-to-end digitalisation to power the ship repair cycle and processes. The new yard will also support the Group’s development in other sectors including module fabrication and offshore renewable projects.
