A MOOREAST Holdings unit intends to acquire a facility about 1.1 million sq ft in size from a subsidiary of Seatrium, which will quadruple the anchor manufacturer’s production capacity, the group said on Tuesday (Jun 18).
The property, at 60 Shipyard Crescent, is near Mooreast’s current 323,000 sq ft yard at 51 Shipyard Road.
The S$13.5 million acquisition comes as Mooreast seeks to increase its capacity to meet anticipated demand in the market for floating offshore renewable forms of energy.
On Tuesday, the group announced that it expects to complete the proposed acquisition and commence operations at the new facility by the end of 2024, subject to approval by JTC.
Mooreast was granted the option to purchase the property by Seatrium New Energy; a deposit of 10 per cent has so far been paid. The group will fund the purchase through internal resources, it said.
Mooreast’s current yard at 51 Shipyard Road is one of the world’s largest drag anchor manufacturing sites, with in-house fabrication capabilities. Together, the two facilities will have a total land area of approximately 1.4 million sq ft. The combined value of right-of-use assets and equipment is estimated at approximately S$50 million, including machinery and equipment, the group said.
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The acquisition will enable Mooreast to produce enough subsea foundations to support between 1.5 gigawatts (GW) and 2GW of floating offshore wind energy a year – significantly more than its current output of 0.5GW.
This will cement the group’s position as one of only three ultra-high power anchor manufacturers globally, it said.
The new facility will be used to fabricate high-value sub-sea foundations and serve as a logistics hub that will handle holding, staging and assembly of equipment and blocks. This will streamline operations and enhance efficiency, enabling Mooreast to manage and execute larger-scale projects.
The new facility’s 865-m water frontage can accommodate specialist vessels for mobilisation and demobilisation of both onshore and offshore projects.
Mooreast plans to install solar panels on the facility’s rooftop to power its on-site operations, in line with its commitment to sustainability.
Sim Koon Lam, Mooreast’s founder and chief executive officer, said: “The acquisition of 60 Shipyard Crescent will expand our manufacturing capabilities significantly.”
He added that the group is already fielding enquiries from “several developers” of floating offshore renewable energy projects. Such projects seek to generate renewable energy from wind, wave, tidal or thermal sources.
“Mooreast is now ready to handle even bigger, commercial-scale wind projects,” Sim said.
Shares of Mooreast closed down 4.5 per cent or S$0.005 at S$0.106 on Tuesday before the announcement. Shares of Seatrium were down 9.6 per cent or S$0.16 at S$1.51.
