Nam Cheong signs MoU with Labuan Corp to expand offshore marine services

  • Corporate News
  • Tuesday, 19 Nov 2019

KUALA LUMPUR: Offshore support vessel (OSV) provider Nam Cheong Ltd, through its wholly-owned subsidiary Nam Cheong Dockyard Sdn Bhd, has signed a memorandum of understanding (MoU) with Labuan Corp.

The MoU involved the leasing of 7.3 hectares in Kiansam, Labuan.

In a filing with the Singapore Stock Exchange, Nam Cheong described the deal as a testament to its long-established presence and reputation in Malaysia’s offshore marine sector since 1968.

Nam Cheong Dockyard plans 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.

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 Corp 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.

This is in addition to the group’s existing shipbuilding and chartering businesses.

Labuan Corp is an agency under the Federal Territories Ministry.

Headquartered in Kuala Lumpur, Nam Cheong 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 the country. — Bernama

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