Sembawang Shipyard (Sembcorp Marine) to form joint venture with Kakinada Seaports

Sembawang Shipyard Pte., Ltd., a wholly-owned subsidiary of investment holding company Sembcorp Marine Limited, has signed an agreement to form a joint venture with Kakinada Seaports Limited to establish and operate a marine and offshore facility catering to offshore drilling units and merchant vessels trading or operating in Indian waters.

Sembawang is a Singapore-based ship repair facility, while Kakinada Seaports is a gateway port on east coast of India.

The joint venture, Sembmarine Kakinada, Ltd., will initially provide riser/equipment repairs, afloat repairs and modules fabrication and commence operations immediately by using the available pier at the Kakinada port, India.

Sembcorp, through Sembawang will hold 19.9% share of the joint venture's initial investment of $50 million, with an option to increase to 40%. Sembcorp will fund the investment from its own internal resources.

Deal Type    Partnership
Sub-Category Joint Venture
Deal Status  Announced: 2009-11-25

Deal Participants

Partner 1 (Company) Sembawang Shipyard Pte., Ltd.
Partner 2 (Company) Kakinada Seaports Limited

Deal Rationale

The joint venture is part of Sembcorp's strategy and is in line with its Indian hub strategy to cater to the growing needs of customers operating in India.

Related terms: india, investment, joint venture, marine, offshore drilling, partnership, ship, singapore