Otto Marine Shipyard has entered into a Memorandum of Understanding (MoU) with an undisclosed port operator to develop a fabrication and marine facility.
The MoU is non-binding and subjected to guidelines and agreements to be inserted by the concerned boards and authorities’ approval.
The joint venture is expected to augment Otto Marine Shipyard’s Batam yard facility and will be operational by July 2017.
The proposed site of development is located at the vicinity of Singapore, which will provide the shipyard with access to Indonesian oil and gas industries, as well as the cabotage opportunities.
Otto Marine group executive director and group chief executive officer Michael See Kian Heng said: "We have strong capabilities in fabrication, ship repair and conversion and we have a healthy client base that has utilised our sophisticated offshore fabrication services over many years. Furthermore, being in Batam helps us obtain cabotage related business.
"For this upcoming fabrication and marine base, we can provide the above mentioned expertise along with infrastructural and labour support, and the local know-how.
"Adding value to this partnership, our partner brings to the table its world class experience and expertise in port management and a robust following of loyal and repeat customers as well."
Otto Shipyard currently operates a 65ha shipyard through its sister company PT. Batamec, of which the proposed site is anticipated to use a fraction without hindering Batamec’s existing shipyard facilities.