Malaysia Marine Partners with Hanwha for Shipbuilding
Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) has signed a memorandum of understanding (MOU) with Hanwha Power Systems Co Ltd to explore collaborative opportunities in shipbuilding and vessel-related projects. The agreement, finalized on April 8, positions MHB’s subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), as a strategic partner for Hanwha in the region. This partnership aims to leverage both companies’ strengths in engineering and construction for various marine projects.
Strategic Collaboration Details
The MOU establishes MMHE as Hanwha Power Systems’ strategic shipyard partner, focusing on providing comprehensive construction and installation services. This collaboration will enable the two companies to work together on newbuilding, conversion, and retrofit projects, enhancing their capabilities in the marine sector. Hanwha Power Systems, a prominent energy equipment provider under South Korea’s Hanwha Group, will contribute its engineering and procurement expertise to support these initiatives.
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The agreement is set to last for two years, with an option for a one-year extension upon mutual consent. This partnership is expected to strengthen MMHE’s position in the offshore engineering and marine services market, which includes the fabrication, construction, repair, and conversion of offshore oil and gas structures and vessels. MHB, which is 66.5% owned by MISC Bhd—a key player in the PETRONAS group—continues to expand its footprint in the industry.
Following the announcement, shares of MHB saw a slight increase, rising by 1.3% to 39 sen during midday trading on Friday, reflecting a market capitalization of RM624 million. This positive market response underscores investor confidence in the strategic direction of the company and its new partnership with Hanwha Power Systems.
