KHMO enters into MoU with Hung Hua Construction in relation to building a export cable laying barge
The Board of Directors of Kim Heng Ltd. has announced that its wholly-owned subsidiary, Kim Heng Marine & Oilfield Pte Ltd (“KHMO”) had entered into a non-binding memorandum of understanding with Hung Hua Construction Co. Limited, Taiwan (“Hunghua”) in relation to building a export cable laying barge and providing the project expertise and project team required to lay and install the power cable for the offshore windfarm in Taiwan, according to the company's release.
Hunghua is a leading company in marine civil engineering and specialising in offshore windfarm installations in Taiwan. This further collaboration between both KHMO and Hunghua allows both parties to jointly pursue the turnkey development of offshore windfarms in Taiwan, contributing to Taiwan’s national target of installing more than 9GW of offshore wind power by 20291.
Kim Heng has recently incorporated a wholly owned subsidiary Adira Renewables Pte Ltd (“Adira”) and acquired a 300-footer barge to focus on cable laying for offshore wind farm & floating solar farm projects. Adira is 100% owned by Kim Heng Offshore & Marine Pte Ltd, a wholly owned subsidiary of the Company. The initial share capital will be S$100. The subscription for the shares by the Company in Adira will be funded by the Group’s internal resources and is not expected to have any material impact on the earnings per share or the net tangible assets per share of the Group for the current financial year ending 31 December 2021.
This MOU marks another major milestone for the Group’s transition from the oil & gas into the renewable energy sector. The Group is currently evolving into a renewable energy solutions provider and expanding its value chain by specialising in engineering, procurement, construction, and installation support. The Group believes that the available market & demand for cable installation work scopes in the South East Asia region excluding China exceeds US$5 billion in the next 10 years.
