Singapore: SembCorp Marine (SCM) and Nasser Mohammed Al-Mukairish and Partners Company have signed an agreement to form a joint venture named SembMarine (Middle East) (SMME). The company will be a founding shareholder in the Floating Dock for Shipbuilding and Ship Repair Company (FDSCO), and will build, own and operate the yard during its 30-year term.
The 21 hectare FDSCO Yard will be constructed on the Al Jazeera Island which is a part of the Yanbu Commercial Port, and will provide shipbuilding, ship repairing, marine engineering facilities and services to the regional heavy industry. It is scheduled to be fully operational by 2009 and will have a shiplift system for new building and repair of vessels up to Handymax size and a floating dock for repair of vessels up to Suezmax size. The other associated facilities will include ship construction halls, wet and dry berths, final outfitting and commissioning quay, supporting infrastructures and services as well as training facilities.
SCM hit the headlines earlier this month when news broke that it may have lost $248m in unauthorized foreign-exchange transactions. The Singapore-based marine engineer, which has announced that it is currently involved in a legal battle with BNP Paribas regarding a statuatory demand for $50.7m from its wholly owned subsidiary, Jurong Shipyard, will invest $6.6m in cash in SMME for a 60% stake in SMME.
Although Al Mukairish will own the remaining 40% for a $4.4m investment, SCM has an option to acquire up to an 80% share in the company within three years of the date of incorporation. [27/11/07]
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