KUALA LUMPUR (Jan 16): Offshore support vessel provider Marine & General Bhd (KL:M&G) has formed a new joint venture (JV) company to undertake vessel maintenance, repair and docking-related services. 

The new JV will be incorporated under the name Jasa Merin Engineering Sdn Bhd (JME) and will provide vessel services, including maintenance, repair and operational support, as well as ancillary activities incidental to its core business.

"The proposed JV is intended to provide a structured framework to support improvements in the management of maintenance activities for Jasa Merin (Malaysia) Sdn Bhd's fleet," the group said in filing with Bursa Malaysia.

"In parallel, the joint venture allows Jasa Merin to participate in the maintenance, repair and operations (MRO) segment within the domestic marine and engineering industry," the group said.

This will reduce a reliance on third-party service providers, while improving cost transparency and operational control, it said.

Jasa Merin is a 70%-owned subsidiary of the company that operates a fleet of 26 offshore support vessels, comprising 19 anchor-handling tug supply (AHTS) vessels, two straight supply vessels and five tankers.

Marine & General, through two subsidiaries, will hold a 70% stake while the remaining 30% will be owned by Nautica Energy Services Sdn Bhd (NES).

Marine & General said the new JV would improve maintenance planning and oversight, potentially enhancing vessel reliability and reducing unplanned downtime over time. 

According to the group, NES is principally involved in engineering-related services, including management consultancy, repair and maintenance of electrical equipment, engines and auxiliary systems, industrial machinery servicing, equipment trading and technical consultancy.

The group also anticipates potential cost efficiencies from more structured spare parts sourcing, better inventory management and reduced external servicing, although any financial benefits are expected to materialise progressively and remain subject to execution, utilisation levels and prevailing market conditions.

Shares in Marine & General settled unchanged at 18 sen on Friday, valuing the company at RM140.15 million. The stock is down 2.78% year to date.