Kim Heng buys S$10m crane, bags US$7.2m windfarm job

OFFSHORE marine services contractor Kim Heng will fork out about S$10 million to purchase a crawler crane, which will be deployed for a windfarm project in Vietnam under its latest contract win.

This comes as the company is diversifying into the renewable energy support sector.

The crane will be used to lift and install wind turbines, and enable the group to offer turnkey lifting and installation works for onshore and offshore renewable windfarm projects in Taiwan and Vietnam.

About S$7.5 million of the crane's price tag will be funded with a green loan from UOB, and the balance will come from the group's internal resources.

Meanwhile, its wholly-owned subsidiary Kim Heng Heavy Equipment will undertake a US$7.2 million project for a main contractor of Vietnam windfarm projects.

The contract includes engineering, lifting, technical and maintenance services. The new crane will be assembled at the worksite, which is intended to be at a South Vietnam onshore windfarm.

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The project's initial term is 30 months, starting Nov 12, 2021. It may be extended by additional periods of 3 months each.

"Through the entry into the contract, the group is one step closer to providing turnkey windfarm construction and installation services, expanding from its current capabilities of installing transmission cables for windfarms in Taiwan," Kim Heng said.

Shares of Kim Heng rose 1.9 per cent or S$0.002 to close at S$0.107 on Friday (Oct 15), before the announcement was made.