LBS Bina's indirect unit enters MOU with Türkiye's Desan for RM2b shipyard in Melaka

• The proposed shipyard, to undertake ship building and ship repair works, is expected to be developed in three phases on 1,200 acres (485.62 hectares) of reclaimed land, with a value of over RM2 billion, said LBS Bina in a statement on Friday (April 14).
• Under the MOU, both parties will also explore the possibilities of obtaining support from the relevant authorities, subsidies, and soft long-term finance, among others.

KUALA LUMPUR (April 14): Property developer LBS Bina Group Bhd's indirect subsidiary Leaptec Engineering Sdn Bhd has entered into a memorandum of understanding (MOU) with Türkiye-based Desan Deniz Ins San A S to explore the feasibility of developing a shipyard in Tanjung Bruas, Melaka.

The proposed shipyard, to undertake ship building and ship repair works, is expected to be developed in three phases on 1,200 acres (485.62 hectares) of reclaimed land, with a value of over RM2 billion, said LBS Bina in a statement on Friday (April 14).

Under the MOU, both parties will also explore the possibilities of obtaining support from the relevant authorities, subsidies, and soft long-term finance, among others.

The MOU will be effective for 12 months from April 13, 2023, unless renewed by mutual agreement of the parties, or when both parties enter into a definitive agreement.

“We are looking forward to our collaboration with Desan. We have considered various partners to work with in developing our Melaka reclamation project and are pleased to connect with Desan. Desan is well known in the shipyard construction business, shipbuilding, ship repair, maintenance, modernisation, conversion and renovation of all types of commercial and naval ships, and we believe that this business will be a suitable growth industry for our Melaka project," said Tan Sri Lim Hock San, the chairman of LBS Bina and Leaptec.

This agreement follows Leaptec's reclamation and development deal with the Melaka government to reclaim 1,200 acres that fall under the 25,000-acre Melaka Waterfront Economic Zone along the state's coastline.

According to LBS Bina, Desan is a prominent Turkish shipyard solution provider that is chiefly involved in building and developing shipyards, maintaining and repairing ships, shipbuilding, offshore businesses, and other shipping-related activities.

It is capable of building and repairing naval vessels, all types of tankers, bulk carriers, tugboats, and yachts.

At the time of writing on Friday, LBS Bina had risen one sen or 2.35% to 43.5 sen a share, giving it a market capitalisation of RM682.62 million.