ABG Shipyard plans to buy ship repair units

The company has already bought a unit Fujairah, UAE.

In its bid to cater to the international ship repair demand, private sector shipyard ABG Shipyard is planning to acquire ship repair units in the key shipping routes' network, including Singapore and China.

ABG Shipyard has already acquired a ship repair unit at Fujairah, UAE, for an undiscosed amount. The company is planning to develop Fujairah as a ship repair hub in a phased manner.

"While the company is aiming at organic growth in shipbuilding capabilities within the country, it is opting for the acquisition route for making presence in the ship repair market," highly placed sources said.

When contacted, ABG Shipyard Managing Director Rishi Agarwal declined to comment, adding "we are keeping our eyes open, but nothing has been finalised yet."

The company has recently acquired a Canadian shipbuilding equipment facility for $ 5.6 million. "This equipment facility has been dismantled and shipped to proposed Dahej shipyard. This includes advanced equipment, including huge tower crane," the sources said.

Meanwhile, Gujarat Maritime Board and Gujarat Industrial Development Corporation have allotted 21.20 hectares and 15.59 hectares respectively for the proposed Rs 400 crore shipbuilding project at Dahej.

"The Dahej yard will have capacity to build ships with 1,20,00 dead weight tonne (DWT). This yard can build four-five ships a year initially," they said.

According to shipping industry analysts, a vessel with 1,2000 DWT would cost $40 million to $50 million. At present, the company has an order book of Rs 1,700 crore.

Earlier, ABG Shipyard had bagged a contract of construction of two 18,000 DWT geared bulk carriers from Finland-based ESL Shipping OY worth $61.6 million and contract for constructing three anchor-handling tug vessels for offshore applications worth $29.7 million from Cyprus-based Lamnalco.