Singapore-based fabricator Dyna-Mac Holdings and fellow offshore vessel operator and marine engineering services provider Kim Heng have joined forces to participate in larger, more complex floating production storage and offloading (FPSO) module fabrication projects.
A memorandum of understanding signed between subsidiaries of both companies provides Dyna-Mac, a well-known maker of FPSO, FSO and FSRU topside modules, with an option to secure Kim Heng’s two yards with a combined waterfront of 205 m at agreed rates.
The partnership is said to offer Dyna-Mac “greater flexibility to address the spikes in FPSO vessel module fabrication demand and allows the group to further entrench its strategic presence in the FPSO module fabrication business through inorganic growth of its production capacity”.
Kim Heng on the other hand, stands to benefit from the partnership by taking part in more valuable projects and tapping into Dyna-Mac’s know-how and client base in the FPSO module fabrication business.
“This mutually advantageous partnership between Dyna-Mac and Kim Heng aligns with the strategic vision of both companies, reflecting our shared commitment to providing enduring value for our respective shareholders. We continue to be on the lookout for relevant opportunities to collaborate with suitable, like-minded partners to expand our business,” said Lim Ah Cheng, executive chairman and CEO of Dyna-Mac.
The agreement has a term of two years and will automatically renew at the end of each term, Dyna-Mac said in a regulatory filing.