KHZ buys from KMI

Keppel Hitachi Zosen (KHZ) has agreed to purchase the shiprepair, shipbuilding and marine related activities of Keppel Marine Industries for S$166.9 million ($98.9 million).

The deal covers KMI?s interests in shipbuilder and repairer Keppel Singmarine Dockyard (100 per cent), afloat repairer Eagle Engineering (100 per cent), Keppel UAE-Investment (100 per cent), which encompasses interests in Arab Heavy Industries and Arab Eagle Marine Engineering, Keppel Philippines Marine (11.6 per cent) and Penguin Boat International (16.5 per cent).

“Integration will result in greater cost effectiveness and operational flexibility, and hence enhanced competitiveness,” says Charles Foo, KHZ managing director.

The acquisition marks the latest stage of Keppel?s restructuring and rationalisation programme announced in November 1998 by chairman Sim Kee Boon.