Mooreast Holdings announced that its wholly-owned subsidiary Mooreast Asia is acquiring a 98,919 sqm facility from a subsidiary of Seatrium for a consideration of $13.5 million. Upon successful acquisition, Mooreast’s production capacity in Singapore to serve the fast-growing floating offshore renewable sector will quadruple.
Mooreast has been granted an option to purchase 60 Shipyard Crescent. It expects to complete the proposed acquisition and commence operations at the new facility by the end of 2024. The consideration for the new facility will be funded through internal resources.
The facility adjoins Mooreast’s current 30,691 sqm yard at 51 Shipyard Road, which is one of the world’s largest drag anchor manufacturing sites with in-house fabrication capabilities. Together, these two facilities will have a total land area of 129,609 sqm. The combined value of right-of-use assets and equipment is estimated at approximately S$50 million including machinery/equipment.
The enlarged facility will increase its production capacity by four-fold, further cementing Mooreast’s position as one of only three ultra-high power anchor manufacturers globally. This will enable Mooreast to produce enough subsea foundations to support between 1.5 gigawatts (GW) to 2GW of floating offshore wind energy per annum, a significant increase from 0.5GW currently.
The new facility will be used to fabricate high-value sub-sea foundations and serve as a logistics hub to handle holding, staging and assembly of equipment and blocks. This will streamline operations and enhance efficiency, enabling Mooreast to manage and execute larger-scale projects.
The new facility’s 865-metre water frontage will further strengthen the group’s yard division. It will be able to accommodate specialist vessels for mobilisation and demobilisation for both onshore and offshore projects globally. Mooreast will also install solar panels on the facility’s rooftop to power on-site operations, in line with the group’s commitment to sustainability.
See also: Anglo American to sell rest of coal business in US$3.8 bil deal
Sim Koon Lam, founder, executive director, CEO and deputy chairman of Mooreast says: “Apart from economies of scale with a wide sea-front, we will also be able to position ourselves better to meet the growing global demand.”
He adds: “We are already fielding enquiries from several developers of floating offshore renewable energy projects. Mooreast is now ready to handle even bigger, commercialscale wind projects. This will strengthen our value proposition and competitive edge in international markets significantly.”
Shares in Mooreast closed at 11 cents on June 18.
See also: UniCredit starts BPM bid while also mulling Commerzbank deal
