A consolidation of Singapore's marine industry has been underway since the middle of last year. Mergers have reduced the number of yards involved in the repair of large oil tankers, the mainstay of Singapore's boat business, from four to two. According to Alan Francis, analyst at Paribas Asia Equity, productivity gains have enabled Singapore yards to complete jobs more quickly - an important advantage that has allowed them to begin to recover some of the business lost to West Asia rivals. The most productive operators stand to gain most. Chang also likes Keppel Marine, a niche builder and repairer of mid-sized vessels.
More deals are possible.
Singapore Technologies Industrial Corp. A new company, SembCorp Industries, plans to sell non-core businesses. A cleaner balance sheet could help boost the share price when SembCorp is listed, analysts say. After all, it was high gearing that drove so many companies onto the rocks when Asia's market hurricane struck . All money values in U.S. dollars except share prices, which are in Singapore dollars. All Rights Reserved.