Viking Offshore & Marine Limited announced on 26 April 2013, that it would invest up to S$15 million to set up a dedicated innovation hub in Singapore to house and invest in promising offshore and marine companies.
Mr. Andy Lim, Chairman of the SGX Catalist-listed offshore and marine specialist, broke ground for the Viking Innovation Centre (“VIC”), a 120,000sq ft facility to be built at Viking's existing location at 21 Kian Teck Road.
Viking intends to spend S$10million (US$8.11million) to construct and furnish the VIC, which will offer workshop space to companies providing specialized offshore and marine products and services. On top of this, it intends to set aside a further S$5 million to invest in some of these companies and to bring them to overseas markets such as Brazil, India, and Vietnam.
The center will serve as an enterprise hub for these companies, and will combine research and development, collaboration, innovation, technology test-bedding and incubation of new concepts including clustering some companies into product groups to prepare them for the market.
Mr. Andy Lim said, “Over the past three years, Viking’s bolt-on strategy to build up a suite of complementary offshore engineering capabilities has matured. Through the innovation center, we intend to leverage on these capabilities and build up a portfolio of high value-added assets which can address specialized needs of offshore and marine players.”
“With rising costs in Singapore and increasing competition, we seek to move up the value chain and offer a stronger and more complete proposition to existing and new clients. The successful execution of this strategy to build up offshore and marine assets will enhance shareholder value in the medium to longer term,” he said.
“On their own, some of the smaller companies to be housed in VIC may lack the size and reach to penetrate international markets in a meaningful manner. By aggregating
and partnering with Viking– which has already secured project orders from Vietnam, Indonesia, Malaysia, Australia, Middle East, and Brazil–they will be able to reach these markets in a faster and more cost-effective manner,” Mr Lim added.
Located next to the Joo Koon MRT Station and in close proximity to major shipyards, the five-story building will adjoin the existing 67,000sq ft Viking facilities. These currently house the company's offshore and marine operations including corporate headquarters and various subsidiaries. Upon completion, the combined complex will be enlarged to a total built-up area of nearly 200,000sq ft.
The innovation centre will also provide lodging quarters for employees, living and recreational amenities, tenant-shared service infrastructure, flexibly configured space requirements, and more. The facilities sit on a site of 133,000 sq ft. Based on the permitted plot ratio, Viking will be able to enlarge the foot print of the innovation center in future, if needed. This will enhance the plot ratio usage and value of the land parcel.
Viking Offshore & Marine Limited provides integrated solutions that transcend product categories and geographical boundaries to its valued customers. The offshore and marine business of Viking is made up of three operating companies–Viking Airtech Pte Ltd (“Viking Airtech”), Promoter Hydraulics Pte Ltd (“Promoter Hydraulics”), and Marshal Systems Pte Ltd (“Marshal Systems”).
For more information: www.vikingom.com