SINGAPORE - Mainboard-listed Civmec is planning to invest A$80 million (S$84.9 million) to build a naval shipyard near Perth, Australia.
The facility in Henderson will be able to house ship construction and on-going maintenance close to Fleet Base West - the home of Australia's submarine force and half of its naval surface fleet.
It will be the only facility with this capacity in Australia, said Civmec in a filing with the Singapore Exchange on Friday (Dec 16).
Civmec said it anticipates an overall investment in the region of A$80 million to develop the entire facility over the coming years.
The new facility will be situated on about 70,000 sq m of land adjoining the south side of the group's existing facility at the Australian Marine Complex in Henderson. When operating at capacity, it is expected to provide additional jobs for up to 1,000 workers, as well as up to 100 additional apprenticeships and graduates, said Civmec.
Civmec chief executive officer Patrick Tallon said: "The planning for the development of further significant facilities is all about strategically positioning the company to participate in the upcoming Naval acquisition programme, the largest of its kind in Australian history, and in turn will play a major role in the company's long-term future.
"We feel a standalone facility, operated by Forgacs Marine and Defence, is required to ensure there is absolutely no adverse effect to our present valuable clients that we deliver for in our other operating sectors."
Design and planning have already commenced with a further more detailed focus on engineering and geotechnical analysis occurring immediately in the New Year, said Civmec.
The company said it intends to fund the proposed new facility with internal cash resources and borrowings.