MISC to upgrade shipyard

MISC Bhd, the Malaysian shipping company with a big stake in the LNG market, has allocated about RM1.5 billion ($450 million) over the next four to five years to upgrade and expand its subsidiary unit Malaysia Marine & Heavy Engineering (MMHE) shipyard. To date, about RM150 million has been spent and, when completed, will increase the capacity of MMHE by 50%.

MMHE is involved in engineering and construction for the oil and gas (O&G) including deepwater facilities; conversion and refurbishment of offshore facilities. It also undertakes marine repairs. The expansion would enable it to focus on higher-value LNG carriers, petroleum and chemical tankers.

In the first quarter ended 30 June, 2007, the heavy engineering???s pre-tax profit segment grew by 98.7% on-year to RM46.7 million, while the order book was RM3.25 billion and shiprepair RM278 million.

MISC???s LNG division currently operates 25 vessels which should rise to 29 by 2009.