SembCorp Unveils Plans To Save $18M/Year

SembCorp Industries Ltd. unveiled details of its shipyard restructuring, resulting in annual savings of $18 million from 2001 to help the group stay competitive. SembCorp will reportedly eliminate duplications in yard operations of Jurong Shipyard Ltd., Sembawang Shipyard Pte. Ltd., SembCorp Logistics and its Indonesian Karimun yard. The revamp would see SembCorp setting up three units -- JPL Services, Jurong Machinery Automation and Jurong Integrated Services -- to serve the group's yards. JPL would supply all the yards' electricity and water as well as rental of equipment and maintenance. Jurong Integrated will be involved in steel fabrication and piping works for the yards, while Jurong Machinery would provide machinery fitting and marine automation. An estimated $9 million in savings would be realized next year and a steady annual savings of $18 million from 2001. For 1998, ship repair and conversion accounted for 51 percent of Jurong's turnover while offshore works contributed 25 percent and 24 percent was generated by shipbuilding.