Nov 18, 2015 (LBO) – Sri Lanka’s listed MTD Walkers has acquired a ship repair and ship building entity to expand its existing presence in the marine engineering sector.
With this acquisition MTD Walkers has access to Mutwal harbor in Colombo which spans across 3.5 acres that will be utilized for ship repair and ship building.
Mutwal shipyard will be fully equipped to accommodate a broad range of vessels for dry docking and afloat repairs, the company said.
Sarath Obeysekera who is a pioneer marine engineer in Sri Lanka has been appointed as the managing director of the newly formed private company, Walkers Colombo Shipyard.
“New company will function as a subsidiary to Walkers CML group. They are investing 7 million US dollars for Mutwal Shipyard project,” Obeysekera told LBO.
Obeysekera served as the CEO of Colombo Dockyard prior to establishing Seagulf UK private limited which initially commenced operations at the Mutwal Harbour.
MTD has acquired 90 percent of Seagulf UK who secured a 25 year lease agreement with Ceylon Fishery Harbours Corporation to build and operate a ship repairing facility at Mutwal Fisheries Harbour.
For the first time in Sri Lanka, a modern syncrolift and transfer system is to be installed in Mutwal shipyard.
According to company, a boatlift system will also be installed catering to small vessels up to 50 tons in weight.
“We already ordered the equipment for the syncrolift which is about 2 million US dollars. Now we are going to do some civil work to do the construction.” Obeysekera said.
Obeysekera is optimistic about the future of Sri Lankan ship building and repair industry with the reports that suggesting the EU fishing ban to be lifted soon.
MTD Walkers raised over 3.0 billion rupees from a listed debenture two months ago partly to fund this marine engineering sector project.