PSC Naval Dockyard aims to increase local content

  • Business
  • Saturday, 05 Jun 2004

PSC Naval Dockyard Sdn Bhd (PSCND) hopes to increase its local shipbuilding content to 70% from the current 30%, said yard director Ishkandar Shah Amin Shah.  

The company, which has a 15-year concession to repair and maintain all ships and craft of the Royal Malaysian Navy (RMN), is 70% owned by PSC Industries Bhd (PSCI), which has clinched a multi-billion ringgit contract to manufacture and supply the RMN with patrol vessels.  

The company was completing six patrol vessels for the RMN, worth RM5.35bil for a period of 93 months, he said in a media briefing on the company’s developments in Lumut yesterday. 

The government is planning to buy 27 vessels to replace its 30 British-made boats. The first boat would be handed over in November this year and the second in March next year, he said. 

Ishkandar hopes that the government would award contracts to build the rest of the 21 boats to the company because of its efforts to help support the SMEs who provided parts to it. 

“We need volume to sustain the project as with volume comes economies of scale,” he added. “It would take a period of 20 years to build all 27 ships.”  

The company was also in the midst of transferring technology from Europe to further enhance its shipbuilding and weapon-making facilities to better equip the RMN, he said. 

“We aim to provide the RMN with a complete vessel,” he added. 

The company is involved in joint ventures with international companies such as Atlas, a military combat systems provider from Germany and Bofors, which provides guns and ship maintenance for ships. 

So far, the company had spent over RM350mil in infrastructure in Lumut to produce and maintain ships, Ishkandar said. – Bernama 

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