Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) has entered into a memorandum of understanding (MOU) with Hanwha Power Systems Co Ltd to explore collaboration in shipbuilding and vessel-related projects.

In a filing on Friday, MHB said its wholly owned unit, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), signed the MOU with the South Korea-based company on April 8.

MHB is an offshore engineering and marine services company involved in the fabrication, construction, repair and conversion of offshore oil and gas structures and vessels. It is 66.5% owned by MISC Bhd (KL:MISC), which is part of the PETRONAS group.

Hanwha Power Systems is an energy equipment company under South Korea’s conglomerate Hanwha Group.

Under the agreement, MMHE will act as Hanwha Power Systems’ strategic shipyard partner in the region, providing construction and installation capabilities for integrated, end-to-end solutions.

Hanwha Power Systems will contribute its engineering and procurement expertise to support selected newbuilding, conversion and retrofit projects.

The MOU will be valid for two years from the execution date, with an option to extend for a further year upon mutual agreement.

Shares of MHB were half a sen or 1.3% higher at 39 sen at the midday break on Friday, giving the group a market capitalisation of RM624 million.
Source: The Edge Malaysia