KUALA LUMPUR: After nine months, Sime Darby Bhd’s subsidiary Sime Darby Engineering Sdn Bhd has finally completed the acquisition of the Teluk Ramunia fabrication yard from Ramunia Holdings Bhd (RAHB) and Ramunia Optima Sdn Bhd (ROSB).

The RM530 million deal has gone through following the fulfillment of the conditions set in the definitive sales and purchase agreement (SPA) signed by the parties on Aug 3, 2009.

With the deal clinched, Sime Darby Engineering’s yard space will be expanded to 284 acres from 114 acres, making it the largest fabricator in Malaysia in terms of yard size. Sime Darby Engineering’s yard capacity is expected to increase to 105,000 tonnes from 55,000 tonnes presently.

Sime Darby had reportedly been eyeing RAHB for a long time, as did several government-linked companies, given the attractiveness of the yard in Teluk Ramunia.

The acquisition entailed the acquisition of a 170-acre fabrication yard comprising a building, structure, machinery, movable and immovable assets. The yard in Johor is touted to be the largest in the country.

The yards have a combined rated capacity to perform steel fabrication on offshore platforms and other structures of up to 50,000 tonnes.

This article appeared in The Edge Financial Daily, April 6, 2010.