Financial News - 14 APR 2010: Keppel fortifies market leadership in Brazil with new shipbuilding yard

Keppel fortifies market leadership in Brazil with new shipbuilding yard. See press release and related report.

Key Points

• Keppel Offshore & Marine Ltd (Keppel O&M), through its wholly-owned Brazilian subsidiary, Navegantes Maritime Construction and Services, has entered into an agreement with Brazil’s TWB Group to acquire the Estaleiro TWB shipyard in Navegantes, Santa Catarina.
• This 7.6-ha shipyard will be operated by Keppel O&M’s specialised shipbuilding arm, Keppel Singmarine. It has a 300-metre long waterfront and is equipped with a slipway, pipe and hull shops and an outfitting quay. Keppel O&M’s total investment in the yard, including further capital expenditure to upgrade and modernise the facility, will be in the region of about US$50 million.
• The new yard is expected to be operational by the second half of 2010. At full capacity, it is estimated to be able to complete an average of eight vessels a year.

Author's Note
Previously Petrobras has announced plans to charter some 147 locally-built Offshore Support Vessels over the next five years. The new shipyard will help Keppel to meet the demand for works to be carried out locally in Brazil.