SembMarine Awarded $130m Worth Of Contracts
SembCorp Marine’s (SembMarine) subsidiary Sembawang Shipyard has bagged three separate contracts for the repair and upgrades of a floating storage and offloading (FSO) and LNG Carriers’ life extension contracts worth a total of $130 million. The first contract was awarded by Sonangol Pesquisa e Produção SA for the repair and upgrade of the 20-year-old FSO Palanca. Major work scope includes renewing the 20-year-old FSO Palanca’s cargo piping system and pumps, tank blasting and coating, and cables renewal for its electrical system. The other two contracts were two LNG carriers’ life extension projects from North West Shelf Shipping Service Company (NWSSSC) in Australia. The pair of 20-year-old LNG carriers will separately enter Sembawang Shipyard in June and September where upgrading and repair will give them another 10 years or more of trading life.
Significance: The awards of such sophisticated projects would not only boost its top line but further reinforce Sembawang Shipyard’s global leadership position in highly specialised LNG carriers’ life extension work.
ST Engineering’s Unit Wraps Up Stake In EcoServices
Singapore Technologies Engineering (ST Engineering) completed the acquisition of a 50.1 percent stake in US-based engine wash services provider EcoServices LLC, with a restructuring of the original investment terms to achieve greater efficiency. Under the restructured terms, Vision Technologies Aerospace acquired the 50.1 per cent equity interest for US$20 million, instead of US$33.3 million. But Pratt & Whitney, which retains the remaining 49.9 percent stake, contributed all the assets of the EcoServices business to EcoServices except the business’ intellectual property. Hence, EcoServices entered into an exclusive, perpetual, irrevocable and worldwide licence and purchase option agreement with Pratt & Whitney for the use and acquisition of that intellectual property. The current aggregate cost of the licence and purchase option is US$13.3 million, which can be exercised any time after an initial 90-day period following the closing of the investment.
Significance: EcoServices is the largest provider of advanced technology engine wash services to both commercial and military aircraft operators and the addition to Vision Technologies Aerospace, which holds the US headquarters of ST Engineering, will be a boost to its US operations.
IPC Buys Land For Sixth Project Costing 2.48b Yen In Oiso, Japan
IPC Corporation is embarking on its sixth condominium project in Japan, with the purchase of a piece of land in Oiso, Kanagawa prefecture. The Oiso project, a three-storey development comprising 75 units, has been pre-sold to a Japanese real estate company, with full payment to be made upon project completion and delivery of the units. The total cost of the project is approximately 2.48 billion yen ($39.3 million), and will be funded by internal resources as well as the net proceeds from the placement earlier in February. The building completion for the development is scheduled for 3Q13. IPC had previously completed a total of four condominium projects in Japan since mid-2009 with the fifth expected to be completed by end-1Q13 and all the units should be delivered by end of 2Q13.
Significance: IPC’s sixth project in Japan is in line with its strategy to continuously evaluate property projects in Japan to purchase, develop, and re-sell, as well as for business hotels. The projects undertaken will enable the company to gain a stronger presence there.