KUALA LUMPUR, Nov 18 -- Malaysia’s Offshore Support Vessel (OSV) providers Nam Cheong Limited (Nam Cheong) through its wholly-owned subsidiary Nam Cheong Dockyard Sdn Bhd (Nam Cheong Dockyard) has signed a memorandum of understanding (MoU) with Labuan Corporation.
The MoU involved the leasing of 7.3 hectares of land in Kiansam, Labuan.
In a filing to Singapore Exchange, Nam Cheong described the landmark deal as a testament to Nam Cheong’s long-established presence and reputation in Malaysia’s offshore marine sector since 1968.
Nam Cheong Dockyard intends to redevelop the existing facilities on the land into modern integrated marine engineering and construction facilities to buttress the growth of oil and gas industries in Labuan, Sabah, Sarawak and Brunei.
New facilities to be redeveloped include a warehouse for supply base, yard utilities, waterfront bulkhead facilities for ship repairing, ship berthing and fabrication workshops, as well as a training centre for workers.
A definitive agreement is expected to be inked by year-end, while the operation is set to begin in 2021.
Upon completion, the operation on the land is expected to contribute positively to the group’s financial performance from the financial year ending Dec 31 2021 onwards.
The group’s own fleet is also allowed to leverage the ship repairing, ship berthing and supply base services on the land to improve the overall operational efficiency.
It expects the newly established inaugural working relationship with Labuan Corporation to set a firm foundation to boost its potential in expanding revenue streams to include ship repair, offshore engineering procurement and construction, supply base and logistics for offshore marine support service, in addition to the group’s existing shipbuilding and chartering businesses.
Labuan Corporation is an agency under Malaysian Ministry of Federal Territories.
Headquartered in Kuala Lumpur, Nam Cheong Limited is a global offshore marine group specialising in the building and chartering of OSVs.
Since its establishment in 1968, building only fishing vessels, the group is now Malaysia’s largest OSV builder, owning and operating one of the largest shipbuilding yards for OSVs in Malaysia.