Singapore shipyard group Sembcorp Marine (Sembmarine) is set to cease operation its Tanjong Kling Shipyard at year end, formerly Jurong Shipyard, as it consolidates business at its Tuas Boulevard mega-yard.
In its full year results announcement Sembmarine revealed the group is continuing with its transformation and yard consolidation strategy as it will move all operations from its Tanjong Kling yard by end-2019, four years ahead of schedule. The Tanjong Kling yard was previously known as Jurong Shipyard.
After Sembmarine has consolidated its operations at its integrated Tuas Boulevard Yard, the group is expected to realise cost savings estimated at SGD48m per annum from its financial year 2020.
Speaking about the market Wong Weng Sun, president and ceo of Sembmarine, of noted that offshore rigs utilisation and day rates for most segments have continued to stabilise or improve, underpinned by more drilling activities. Offshore capex spending has also continued to improve with more production projects moving towards final investment decision stage.
“While offshore drilling activities have increased, offshore rig orders will take some time to recover as the market remains oversupplied,” Wong said.
“The ship repairs and upgrades segment remains intensely competitive although the market is expected to improve with higher work volume from the new IMO regulations requiring the installation of ballast water treatment systems and gas scrubbers,” he said.
