Singapore: An unnamed Singaporean shipyard has been linked with coming to the rescue of financially troubled Titan Petrochemicals. Titan, mired in debt and forced to suspend trading on the Hong Kong stock exchange a couple of years ago, says it has signed a memorandum of understanding with a Singapore shipyard to use Titan’s mothballed Fujian yard to start building drilling rigs, according to the South China Morning Post.
"The foundation for Titan's restructuring is the shipyard, which is potentially its only viable asset," said Titan chief executive Tang Chaozhang.
Guangdong Zhenrong, the company which has moved to save Titan, has been working to find a partner to make use of the asset and come up with a viable business model, Tang told the local Hong Kong newspaper.
Tang described the Singapore-based rig maker as a regional industry leader.
The yard in Fujian could build up to eight rigs a year, Tang said.
Titan posted a net loss of HK$4bn for 2012, compared with a loss of HK$621m for 2011. Last year's results will be announced next month. [24/02/14]