SINGAPORE - Marine and offshore engineering group SembCorp Marine is boosting its capabilities with a major investment in a steel fabrication facility and a purchase of an American firm.
The company said on Wednesday that it will invest $222 million in a multi-functional steel fabrication facility at its new yard in Tuas.
The steel facility is designed to be the central base for steel fabrication at the Tuas yard and is expected to boost its automation functions and productivity count.
The company said the preliminary projection of the development costs of the marine works for the second phase of works on the SembMarine Integrated Yard @ Tuas is estimated to be around $489 million.
The total investment will come to some $711 million, including the cost of the steel fabrication facility.
SembMarine expects to fund the investments through its recently announced $600 million bond issue and internal funds.
The company also announced separately that its wholly-owned subsidiary, Jurong Shipyard, is acquiring a Houston-based company.
It's paying US$21 million to buy SSP Offshore, which specialises in the design, engineering and delivery of floating production and drilling solutions for the oil and gas industry.
SembMarine shares closed down two cents at $3.87 on Wednesday. Both announcements were made after markets closed.