Dubai Drydocks plans more acquisitions

Dubai Drydocks is planning to invest $200 million this year for acquisitions and joint ventures to maintain its leading position in the ship-building industry in the Middle East. Last year in July, DD acquired Singapore?s Pan-United Marine Limited, its first overseas acquisition.

Much of DD?s growth was achieved in the ship building sector which contributed about 50% of its total revenue. This growth has been facilitated by the improvement in the company?s ship building capacity to between 2,500 and 3,000 tonnes of steel a month. Recently the shipyard completed its largest vessel to date, a 16,500 DWT semi-submersible rig ordered by Aker Kvaerner of Norway, and has an order for a similar vessel from the same company which will be delivered later this year.

In January, DD will take full possession of Singapore?s Labroy Marine, which was recently acquired for Dh6 billion. It already has orders for 40 ships and six jack-up rigs.

The company is also investing about Dh734m in new acquisitions and small joint ventures including a joint venture with a Singaporean firm for a small Chinese shipyard in Yangzhou and discussions are ongoing for a joint venture in the Mediterranean to service luxury yachts and another one for a greenfield site in Indonesia.