Singapore offshore vessel operator Kim Heng is diversifying into the renewable energy support sector with the latest contract award to install wind turbines in Vietnam.
The company’s subsidiary Kim Heng Heavy Equipment will execute a $7.2m contract for an undisclosed main contractor of Vietnam wind farm projects. The deal includes engineering, lifting, technical and maintenance services. The project’s initial term is 30 months, starting November 12, 2021 and it may be extended by additional periods of three months each.
“Through the entry into the contract, the group is one step closer to providing turnkey wind farm construction and installation services, expanding from its current capabilities of installing transmission cables for wind farms in Taiwan,” Kim Heng said.
Meanwhile, Kim Heng has purchased a 1,250-tonne crawler crane for S$10m ($7.4m), which will be used to lift and install wind turbines and enable the group to offer turnkey lifting and installation services for onshore and offshore renewable wind farm projects in Taiwan and Vietnam.
About $5.5m of the crane’s price tag will be funded with a green loan from United Overseas Bank, and the balance will come from the group’s internal resources.