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Genting HK's unit to buy systems from ABB Group for S$198m
GENTING Hong Kong's indirect wholly-owned unit has struck an agreement with ABB Group to buy complete propulsion systems, electric power plants, automation and marine software systems for some 131 million euros (S$198 million).
The agreement for MVWW - Genting Hong Kong's unit - to buy the systems was signed on Monday and is meant for the construction of five vessels that MVWW is building for the group which is currently expected to be completed by the year 2021.
In addition, MVWW undertakes that if it is assigned to build up to two additional vessels for the group by end June 2018 (first vessel) or by end June
2019 (second vessel), it is obliged to purchase the respective additional systems from ABB Group.
In a statement, Genting Hong Kong said that to fulfil the group's ten-year cruise ship fleet expansion strategy, it was necessary for MVWW to procure the equipment for the building of new vessels by contracting premium-class suppliers.
Genting HK shares finished at 31 US cents on Monday, up 0.5 US cents or 1.6 per cent.