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 SG$95 million (US$71.7 million) for its commercial ship repair business.
The assets acquired include three floating docks, existing buildings, workshops, and machinery. This asset purchase obviates ST Engineering's 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-square-metre Gul yard, with a gross built-up floor area of 74,593 square metres, has a remaining lease until August 2030. The lease can be extended by another 20 years.
ST Engineering has another shipyard at Benoi, which is mainly for shipbuilding.
