Wednesday 16 August 2023

The board of directors has announced that Dyna-Mac Engineering Services Pte Ltd, the wholly-owned subsidiary of the Company, had signed a MOU with offshore marine services contractor Kim Heng Marine & Oilfield Pte Ltd, a wholly-owned subsidiary of Kim Heng Ltd. (“Kim Heng”) where Kim Heng will support Dyna-Mac on a preferred partner basis to carry out various projects from time to time.

The MOU has a term of two years and will automatically renew at the end of each term. This preferred partnership arrangement provides an option for Dyna-Mac to secure the use of Kim Heng’s yard facilities, and at agreed tariff rates for the entire term of the MOU.

With more than five decades of operations, Kim Heng has developed a wide range of capabilities in the offshore renewable, marine, as well as oil and gas industries, specialising in engineering, procurement, construction and installation support for these sectors. Its two shipyards in Singapore have a combined waterfront of 205 metres.

This win-win partnership offers 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. Through the collaboration, Kim Heng will also benefit by participating in larger, more complex and valuable projects tapping on Dyna-Mac’s know-how and client base in the FPSO module fabrication business.

The FPSO module fabrication sector refers to a specialised segment within the oil and gas industry that focuses on the construction, assembly, and integration of modules intended for use on FPSO vessels. FPSOs are offshore facilities that combine the functions of production, storage, and offloading of oil and gas.

Mr Lim Ah Cheng, Executive Chairman and CEO of Dyna-Mac, said: “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
 operations, leveraging on their expertise and resources to achieve sustainable longterm growth for the Dyna-Mac Group.”

Thomas Tan, Executive Chairman and CEO of Kim Heng, said: “We are excited about our strategic collaboration with Dyna-Mac with a net order book of S$542.7million as announced on 8 August 2023, which enables us to tap not only Dyna-Mac’s wealth of expertise, but also its extensive client network in the FPSO module fabrication sector. This partnership empowers us to engage in more substantial, intricate, and high-value projects, marking a significant step forward in Kim Heng’s pursuit of sustainable longterm revenue growth in the industry.”