SembCorp Marine’s Subsidiary Jurong Shipyard Secures US$84 (S$140 Million) Shipbuilding Contract
SembCorp Marine’s subsidiary Jurong Shipyard Pte Ltd has signed a US$84 million contract with German ship owner Reederei F Laeisz (RFL) for the construction of two units of 2,600 TEU container vessels.
The container vessels will have a high speed of 22.7 knots with high homogeneous container intake of more than 1960 TEU at 14 ton per TEU. Each container vessels will have 400 reefers and with an ability to carry two-tier high cubes in every cargo hold and they are designed to cope with owner’s increasing demands in regional trade routes. Delivery of the first unit is scheduled in March 2006 with the second unit due in September 2006.
Mr Chua Teck Lian, SembCorp Marine’s Senior Vice President of Marketing said “We are pleased that the design of our 2,600 TEU container series is well received by customers. The idea of building the container vessels was mooted in 2002 in anticipation of an expected rise in demand for this size of container ship. The design of the 2,600 container vessel is proprietary to Jurong Shipyard. This decision coincides with the rising market trend, corresponding firming of prices for container vessels and at the same time meeting the owner’s delivery schedules.”
Barring unforeseen circumstances, SembCorp Marine expects a positive contribution to its earnings from the contract. However, this contract is not expected to have any material impact on the net tangible assets and earnings per share of SembCorp Marine for the year ending December 31, 2004.
Revenue from the contract will be recognized according to SembCorp Marine’s revenue contribution policy based on the percentage of completion method measured by reference to the value of work performed relative to the total contract value over the duration of the contract.
About SembCorp Marine
SembCorp Marine is the marine engineering arm of SembCorp Industries, Asia’s foremost engineering services group. A leading global marine engineering group, SembCorp Marine specialises and is internationally renowned for its expertise in ship repair, shipbuilding, ship conversion, rig construction and offshore oil and gas engineering. SembCorp Marine has a combined docking capacity of 2.3 million deadweight tonnes (dwt) and offers the largest marine engineering facilities east of the Suez.
Jurong Shipyard is renowned for offering a "one-stop total service" in ship repair, shipbuilding, ship conversion, rig construction and offshore engineering. Sprawling over a total land area of 65 hectares in 2 locations, Jurong Shipyard operates four graving docks with a total capacity of 1,100,000 dwt and berthing quays stretching over a total length of 2,728 metres with a maximum draft of 9 metres.
About Reederei F. Laeisz
F. Laeisz has a long and proud history and was originally founded in 1824. Today, the group owns and/or manages a modern fleet of about 50 vessels of approximately 2.5 mio tonnes deadweight. The Company has a diversified range of vessel types that include containers, ro-ro vessels, bulkers, reefer vessels and gas carriers.
Laeisz is 100% privately owned by the Schues-Family and is located in Hamburg, Rostock and Bremerhaven. The Company has a total workforce of 110 employees onshore and 1,100 at sea.
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