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Keppel Offshore & Marine (Keppel O&M) will inject seed money of $150 million to fuel KOMtech over a 5-year period.
Mr Choo Chiau Beng, Chairman & CEO of Keppel O&M unveils this investment on 5th anniversary. He expressed, this will be Keppel Corporation’s largest-ever spending on R&D.
Mr Choo Chiau Beng said, “KOMtech is an extension and strengthening of current R&D initiatives. It will also work closely with our industry partners to conceive effective solutions for the market. This project obtained additional support from the Economic Development Board (EDB).
KOMtech’s scope will include managing, stimulating and carry outing R&D, product development, technology foresight, shipyard process improvement and knowledge building activities.
Sustain market leadership
Mr Choo Chiau Beng thought, in the long run, KOMtech’s deliverables will sustain our market leadership, ad provide the quantum leap in technology and returns for the Company.
Mr Charles Foo, Keppel O&M’s Managing Director (Special Projects) pointed out, such R&D had yielded many proprietary designs which Keppel had used to forge its position at the top of the industry.
He also expresses, such technologies and designs include 20 jack-up and four semi-submersible oil rigs. Keppel O&M’s proprietary technologies have generated contracts worth about $15 billion over the years. In the future, the Company will seeding the $150 million over an initial five-year period and the centre will work synergy with the group’s three existing technology units.
Currently, KOMtech has 30 professionals. Half of them are doctors. This will be increased to 100 in the near future.
Mr Choo Chiau Beng said, we believe that with the current situation in the market place – both in marine and offshore – there will be healthy demand for both our products and services. Our emphasis is to continue to attract talents and good people to our company.
Last year, Keppel O&M invested $17 million on nurture talents. From 2002, the Company has nurtured over 450 scholars.
Besides, Choo Chiau Beng also said, this investment is not related with current price of international benchmark crude oil. The Company’s target is to become the provider of choice.
Keppel O&M also signed a technology cooperation agreement with oil giant and long-time partner ConocoPhillips to jointly explore and contribute core competencies for selected projects relating to the concept development, design and construction of ships and offshore installations for the energy industry.
The company was established in 2002. The Company’s revenue has grown some 300% from $1.9 billion in 2002 to $5.7 billion in 2006, and is expected to be higher this year. Its return on equity has improved from around 20% in 2002 to 50% in 2006.
Last night, Foreign Minister George Yeo also participated in Keppel O&M’s 5th anniversary celebrations.
He said: “Although our companies in the offshore and marine industry now operate worldwide, their home base is Singapore which is the source of their strength. Building upon Singapore's ideal location as a deep sea port between two oceans, we have become a hub for transportation and logistics, finance and other business services, engineering, petrochemicals and much else besides.”
To mark its fifth birthday, Keppel O&M also launched a book, More Than Mettle, detailing its rapid growth to become a world leader.
The company also donated $500,000 to various charities.
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