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I have noticed that announcements of expansion CAPEX generally comes at the peak of the booming market (Eg. Seatrium's announcement of a greenfield shipyard in Brazil and consolidation of Spore ops at Tuas came when it was announcing a new rig order every few months). Nonetheless, this is an expansion of current capacities and doesn't look like a big one. We could probably see what happens down the road.
In the greater scheme of things, OPMIs have to either avoid or endure the headwinds from the Capital Cycle. But when the tailwinds of the Capital Cycle comes, there is plenty of risk-adjusted returns available.
CORPORATE UPDATE ON A NEW CLEAN ENERGY SHIP MANUFACTURING BASE
The Land features approximately 1320 meters of Yangtze River shoreline, offering a unique opportunity for efficient expansion. This land is strategically located adjacent to our existing Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd. This proximity will enable us to seamlessly integrate new facilities, thereby enhancing both productivity and operational efficiency.
With the long-term prospects of LNG and other clean energy vessels in mind, it is the Group’s current plan to invest approximately RMB 3 billion in capital expenditures over the next two years to complete this Project, subject to the Group being satisfied with the outcome of the feasibility study.
https://links.sgx.com/FileOpen/Corporate...eID=809822
In the greater scheme of things, OPMIs have to either avoid or endure the headwinds from the Capital Cycle. But when the tailwinds of the Capital Cycle comes, there is plenty of risk-adjusted returns available.
CORPORATE UPDATE ON A NEW CLEAN ENERGY SHIP MANUFACTURING BASE
The Land features approximately 1320 meters of Yangtze River shoreline, offering a unique opportunity for efficient expansion. This land is strategically located adjacent to our existing Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd. This proximity will enable us to seamlessly integrate new facilities, thereby enhancing both productivity and operational efficiency.
With the long-term prospects of LNG and other clean energy vessels in mind, it is the Group’s current plan to invest approximately RMB 3 billion in capital expenditures over the next two years to complete this Project, subject to the Group being satisfied with the outcome of the feasibility study.
https://links.sgx.com/FileOpen/Corporate...eID=809822