AsiaShipyards

Keppel and Sembcorp yard merger completed

Singapore’s top two yards have completed their mega merger, ending a two-decade saga.

Keppel Offshore & Marine (Keppel O&M) and Sembcorp Marine have joined forces and will trade under the Sembcorp brand with Keppel’s Chris Ong taking charge of the yard giant.

The combined yard group has a total orderbook of S$18bn ($13.4bn) lasting through to 2026.

“While integration of this scale will present challenges, the enlarged group is expected to benefit from greater synergies from the broader geographical footprint, larger operational scale and enhanced capabilities of Singapore’s two leading O&M companies,” Sembcorp Marine said.

Merging the shipyard units of Keppel and Sembcorp has been mooted many times over the past 20 years as Singapore faces up to cheaper shipyard competition across Asia.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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