Malaysian shipbuilder plans expansion

Nam Cheong Dockyard Sdn Bhd in Miri, Sarawak, Malaysia, is planning to expand its business overseas and increase its shipbuilding capacity on the back of higher demand for oil and gas support vessels, especially for deepwater exploration.

Its executive director Leong Seng Keat said the company’s future direction was in building more deepwater vessels. It has received more than 10 orders for offshore vessels scheduled for delivery by 2010. Nam Cheong’s revenue increased threefold to RM170 million in 2006 from RM55 million the previous year. It is now considering increasing its shipbuilding capacity from eight annually, and growing its business in the Middle East, South Asia and Australia.

The company has delivered more than 50 vessels since it started in 1987, 20% of which were used in territories outside Malaysia, Leong said. On expanding productivity, he said it was a matter of increasing its workforce and sourcing for more land and raw materials.