SembCorp purchases stake in Indian shipyard

The Singapore company SembCorp Marine, the world’s second-largest builder of offshore oil rigs, is paying SGD 29 million ($19 million) for a stake in an Indian shipyard. The purchase of a 3.31% stake in Pipavav Shipyard Ltd (PSL) is the Singapore company’s first investment in India.

With the investment, SembCorp Marine is aiming to establish other business ventures and ???grow our marine and offshore business in India,?? said Ng Thiam Poh, senior vice-president of corporate development. The company has also entered into a technical assistance agreement with PSL which includes advising on the design of the shipyard, its layout and infrastructure.

PSL is located on the west coast of India and the 85-hectare shipyard is scheduled for completion in September 2008.