New maritime firm in Abu Dhabi to service Gulf navies

Business Materials 21 July 2008 05:08 (UTC +04:00)

Abu Dhabi Ship Building (ADSB) and the UK's BVT Surface Fleet have announced plans to establish a new joint venture company in Abu Dhabi next year to provide a range of support services to navies and security organisations in the Gulf Cooperation Council (GCC). ( dpa )

The size of the investment in the new company and the shareholding pattern are yet to be decided.

"In the last 18 months, the regional naval tenders for new ship construction are cumulatively valued around $500 million. The joint venture company will aim to get a significant share of the total service support of these vessels," said Abdullah Nasser Bin Huwaileel Al Mansouri, chairman of the ADSB board of directors.

Over the last 12 months, ADSB has secured orders for new ship construction and refits to the value of about $100 million, said Al Mansouri.

The yet-to-be-named new company will offer naval support services across the full spectrum of integrated logistics support and training as well as outsourcing solutions for base facilities to support the marine fleets of navies, coast guards, marine police, Critical National Infrastructure Authority and commercial ships.

"This joint venture is aimed at offering military and paramilitary clients a local provider of total naval support services to maintain their vessels, maximise availability and to run their non-core base activities and facilities economically to support their fleets," said William S. Saltzer, ADSB's CEO.

"The new company's objectives will include keeping an inventory of spare parts," said William D. Stewart, ADSB's vice-president for marketing, adding that there are nearly 500 ships in the GCC that could potentially be clients for the new company.

ADSB is 40 per cent owned by the Mubadala Development Company and 10 per cent by the Abu Dhabi government. The remaining 50 per cent shares are owned by individual shareholders.

Established in 1996, ADSB operates the most modern naval shipyard in the Gulf region.