Mumbai: India’s Bharati Shipyard Ltd plans to relocate the entire shipbuilding machinery of 130-year-old Swan Hunter (Tyneside) Shipyard Ltd from England to southern India.
The Indian company said on 16 April the asset buyout and the consequent move from New Castle upon Tyne to Mangalore in Karnataka state would help it save costs and time to set up a new shipyard.
“This buyout helps us in some cost savings and gives us some lead time in getting them right away,” Bharati’s financial controller, Parag Doshi, said.
The dismantling and transport of the yard would take up to a year and the relocated plant is expected to start operations by the end of 2008, he said.
Bharati paid an undisclosed sum to buy the machinery capable of building ships up to 100,000 dead weight tonne (DWT), but the sea off Mangalore had a draught of just 60,000 DWT limiting the size of ships to be built at the relocated unit, he said.
Indian shipyards, though smaller than many global competitors, have been getting a flurry of orders, as firm freight rates and demand for new ships keep overseas yards occupied until 2009.
The company, India’s second largest private shipbuilder, has unexecuted orders worth of about Rs23 billion, Doshi said. Its larger competitor ABG Shipyard Ltd has orders for Rs34.55 billion.