Ship Building

May 02, 2008 (LBO) – Colombo Dockyard, Sri Lanka’s sole listed ship
builder, said it plans to invest 473 million rupees this year to
upgrade yard infrastructure to meet growing demand for ship building
and repair work. The yard, a subsidiary of Japan’s Onomichi Dockyard Co., which
provides management. and technical expertise, anticipates it will be
get more business with India’s trade boom and expansion of its fleet
as well as the growth of offshore oil exploration and drilling.

The yard’s net profit for the 2007 financial year shot up 77 percent
to 1.1 billion rupees owing to a steady supply of orders for new
buildings and repair work.

It has set itself a sales revenue target exceeding 10 billion rupees
by 2010 with profit expected to b seven percent of revenue.

“To achieve this target, we will infuse a capital investment of 473
million rupees, which will in turn improve the steel work production
capacity by end-2008,” Dockyard chairman Shinichi Tatebe said.

“We also aim to make a considerable investment towards improving the
facilities within our yard,” he told shareholders in the firm’s annual
report.

The yard has a full order book and even repairs are now booked well in
advance b