ASL Marine Holdings and its wholly-owned subsidiary, PT Sukses Shipyard Indonesia, have agreed to buy a shipyard in Batam for US$20 million (S$25.6 million).
The shipyard, to be purchased from PT Loh & Loh Construction Indonesia, is located next to ASL Marine's existing shipyard in Batam, the group said in a filing to the Singapore Exchange on Monday.
The Batam shipyard was valued at around $33 million as at Dec 20 last year by property valuer KJPP, Sarwono, Indrastuti & Rekan.
ASL Marine already owns four shipyards, which are located in Singapore, Batam and China.
It said in its statement that the proposed purchase would let it expand its capacity and berthing space to support growing demand from the marine and offshore sector for ship repair and upgrading of ships and other floating structures.
The extra shipyard will also supplement the group's revenue stream and strengthen its ability to serve customers in the South Asia region, ASL Marine said.
PT Loh & Loh Construction Indonesia is a unit of Miclyn Express Offshore, which is headquartered in Singapore.
ASL Marine said that Miclyn Express Offshore was selling the Batam shipyard to focus on its core vessel chartering business.
ASL Marine's shares were flat at 73.5 cents as at 10.10am on Monday.