Bangalore: Singapore’s Sembawang Shipyard Pte Ltd will set up a $375 million (Rs1,750 crore) yard with a local partner in Kakinada, Andhra Pradesh.
Sembawang Shipyard has floated Sembmarine Kakinada Ltd, a joint venture with Kakinada Seaports Ltd, which operates the Kakinada port, to develop and operate the shipbuilding and repair facility. The joint venture agreement was signed in New Delhi on Thursday.
The yard will build and repair vessels and other equipment used for supporting offshore oil exploration and production.
Sembawang Shipyard is a subsidiary of Singapore-listed Sembcorp Marine Ltd, the world’s second biggest oil rig builder. Sembcorp Marine through Sembawang Shipyard will hold a 19.9% share of the ventures’s initial investment of $50 million, with an option to increase it to 40%, the company said in a statement.
Sembmarine Kakinada will be developed in three-phases over three-five years.