Perth-based shipbuilders, Strategic Marine Pty Ltd and Austal Ltd, have moved to further expand their international operations via the development of client bases in key overseas markets.
Perth-based shipbuilders, Strategic Marine Pty Ltd and Austal Ltd, have moved to further expand their international operations via the development of client bases in key overseas markets.
Strategic Marine, formerly known as Geraldton Boat Builders, recently established a wholly owned subsidiary in the lucrative Vietnamese market.
Strategic Marine operations support manager Ian Stevens told WA Business News the subsidiary had secured about 110,000 square metres of waterfront land to build a shipyard in an industrial zone located 80 kilometres from Ho Chi Minh City.
“The Vietnam shipyard is undergoing construction at the moment and will be completed in early 2007,” Mr Stevens said.
The Vietnamese shipyard adds to the company’s other shipyards in Henderson and Singapore and will offer ship design, shipbuilding, ship repair, engineering and fabrication services to clients.
The company produces both aluminium and steel vessels, including offshore service vessels, crew boats, patrol vessels, landing craft, anchor handling tugs, utility boats, barges, tankers, dive support vessels and container vessels.
Mr Stevens said more than 90 per cent of the company’s production went to international clients, including the Singapore Coastguard and the Malaysian Police.
More than 100 fast patrol vessels have been designed and constructed by the company, with 60 exported to Singapore and 15 to Malaysia. The vessels range in size from 11 metres to 50 metres and have speeds up to 52 knots.
Mr Stevens said a considerable amount of orders were from repeat business with clients.
Last month, Strategic Marine’s Singapore subsidiary signed contracts to build three new 40 metre offshore utility vessels with a long-term client, Syarikat Borcos Shipping of Malaysia.
Mr Stevens said the company had also produced vessels for clients in Nigeria and Qatar with a further focus on clients in Africa and the Gulf region in the future.
Meanwhile, Austal has secured a $140 million contract with an overseas group to build multiple aluminium passenger ferries, with the option of further purchases.
While the shipbuilder is under a strict customer confidentiality agreement, Austal executive chairman John Rothwell told WA Business News the deal was a strong contribution to the company’s order book.
“In our yards, both here in Perth and in Mobile, Alabama, we have three quarters of a billion dollars worth of ships under construction,” he said.
Due for a staggered delivery in 2007 and early 2008, these fast ferries will be built in Australia and provide the basis for the continuation of current high levels of production.
In the company’s 2005-2006 annual report, Mr Rothwell said the 2006 financial year was a further improvement over the record 2005 year following a significant turnaround in its US operations.
Looking forward, Mr Rothwell said the US defence forces requirements for high speed vessels remained high.
“Contracts on hand at June 30 2006 amounted to $577.7 million to be completed across the 2007 to 2009 financial years,” he said.
Austal came 14th in the WA Business News Book of Lists for WA exporters with 90 per cent of its vessels exported overseas. Its 2005-2006 export revenue was $350 million, an 11 per cent increase on its 2004-2005 export revenue of $315 million.
