TAS secures Rm98mil contract
Orders of two vessels are expected to be delivered to a Middle-east client next year
TAS Offshore Bhd has secured a big contract to sell two vessels for Rm98mil to a Middle East client.
KUCHING: TAS Offshore Bhd has secured a major contract to sell two vessels for Rm98mil to a MiddleEast client.
The two anchor handling/oil recovery/support vessels are expected to be delivered by late 2013.
The same client has over the years purchased 15 units of vessels from TAS.
Group managing director Datuk Lau Nai Hoh said the latest contract increased the total value of contracts won by TAS for financial year ending May 31 to Rm182.5mil.
In March, the group secured orders for five tugboats worth Rm22.7mil and a sixth tugboat for Rm2.5mil from Indonesia.
“One of the anchors handling tug supply (AHTS) vessels we signed last Friday will be built at our shipyard in Sibu while the other will be constructed at a shipyard in China,” Lau told Starbiz yesterday.
He said the same China shipyard was now building two other AHTS vessels for TAS.
One of the vessels was near completion and due for delivery soon to an overseas client while the other was being built for sale.
“We are scouting for a buyer for the second AHTS vessel,” he said.
TAS turned to an established shipyard in China to build new vessels as its Sibu shipyard was operating at full capacity.
According to Lau, it was cheaper by about 3% to outsource the construction of the AHTS vessels to the China shipyard than build it locally.
Besides competitive rates, the China shipyard offers quality workmanship and could be expected to deliver the vessels on time.
Lau said TAS was now negotiating with other potential clients for new shipbuilding orders.
In notes accompanying its quarterly results last month, TAS said the demand for tugboats in Indonesia was still “very encouraging.”
This was due to the growth in mining activities as a result of demand for alternative sources of power supply.
TAS also builds landing craft, utility/support vessels, barges, ferries and workboats.
The group is also into ship repair business.