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operation. We believe these favourable industry trends will provide strong support for the vessels that
we build.
We work with Norwegian ship design firms to tap into their expertise in the design of sophisticated
offshore support vessels. We believe that our shipbuilding yard is the only one in Asia which builds
21,000 bhp AHTS vessels on a turnkey basis using the VS491 design from renowned Norwegian ship
design house Vik-Sandvik. In addition, we have entered into an arrangement with Marin Teknikk AS
for the exclusive use of one of their proprietary PSV designs in selected countries in Asia and the
Middle East until December 2008.
Our specialised focus has allowed us to build up our expertise in constructing high-specification
offshore support vessels, to improve our production quality and efficiency and to develop a competitive
cost structure. It has also enabled us to gain recognition in the construction of complex and
sophisticated offshore vessels. We have been able to build a sizeable order book which, as at 8 August
2008, was S$937.1 million.
An efficient and strategically located shipyard
We believe we have one of the largest shipyards in Batam, an island in Indonesia located approximately
20 kilometres from Singapore. Our shipyard has approximately 40 hectares of land area and 450 metres
of usable waterfront.
Batam is a major hub for the shipbuilding industry in South-east Asia. Our proximity to Singapore
provides us with a strategic advantage as a result of Singapore’s position as a hub for the regional
marine and offshore industry, which allows us access to the marine and offshore support and expertise
from Singapore. Our location in Batam also enables us to tap into a ready supply of workers from
Indonesia.
Our Syncrolift» allows for the construction of up to twelve 5,000 bhp to 10,800 bhp vessels at any one
time. More importantly, the Syncrolift» is able to move vessels in and out of the water efficiently for
test launches, ship repair or underwater works. As a result, we are able to complete the construction of
a larger number of newbuildings and the repair of vessels in greater numbers within a shorter
timeframe. Consequently, we enjoy higher productivity and economies of scale.
Strong engineering and technical capabilities and turnkey approach
We adopt a proactive, total solutions approach, in which we provide our customers with turnkey
solutions, ranging from the selection of design to project specification, procurement, construction,
system installation and integration, testing, commissioning to warranty support. We believe that our
turnkey approach enables us to provide value-added customised solutions that command higher margins
and which distinguish us from our competitors.
We are able to deliver our turnkey solutions as a result of our established relationships with our
suppliers and our strong engineering and technical capabilities.
Our operations benefit from a dedicated, skilled and experienced team of naval architects and engineers
who are specially trained to operate the TRIBON» software, a three-dimensional product model naval
architecture programme originally created for designing commercial and naval vessels. This in-house
capability enables us to build a precise virtual model of the vessel, which can be reviewed and tested
prior to production, thereby minimising errors and resulting in a more efficient shipbuilding process.
Experienced management team
Our key executive officers with operating functions have in-depth experience in the offshore marine
industry, with an average of 34 years of experience.
Our management team remains focused on continually identifying market opportunities and achieving
improved operating efficiency and returns.
Through the years, our management team has developed strong relationships with our customers,
designers and our suppliers. We have also established a reputation among our customers for providing
quality service and maintaining high operational standards. This reputation has benefited our shipbuilding
and ship repair and conversion businesses in terms of quality and on the execution of our
customers’ delivery schedules.
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