KUALA LUMPUR: BOUSTEAD Heavy Industries Corp Bhd (BHIC) aims to secure more shipbuilding as well as maintenance, repair and overhaul (MRO) contracts from the Royal Malaysian Navy.
Under the navy’s long-term programme, the company is undertaking shipbuilding works for littoral mission ships (LMS) and littoral combat ships (LCS) while preparing to bid for multi-role support ship (MRSS) projects either on its own or via a partnership.
The LMS are mid-size vessels mainly used for sea patrol.
BHIC is building four LMS with its sub-contractor — a Chinese shipbuilding company — and six LCS with assistance and advice from its French partners.
The LMS contract is valued at RM1.17 billion.
Navy officials and BHIC personnel are currently in China to finalise the designs of the ships.
“The Chinese are designing the ships based on Malaysia’s needs,” BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor told NST Business.
The Chinese company will build two ships in China while the remaining will be built at BHIC’s shipyard in Lumut, Perak.
The first ship from China will be delivered by 2019, the second and third by 2020 and the fourth by 2021.
On the navy’s “15-to-5” transformation programme, Ramli said it would benefit BHIC and the local maritime industry.
The 15-to-5 programme involves a reduction of the Navy’s 15 classes of vessels to five — which are LMS, MRSS, LCS, new generation patrol vessels (NGPV) and submarines.
Meanwhile, the LCS contract is valued at RM9 billion. The first ship, named KD Maharaja Lela, was built at BHIC’s shipyard in Lumut and was launched last Thursday, ahead of schedule.
The other five will also be built in Lumut and delivered by 2023.
The LCS are complete combat vessels with four-dimensional warfare capabilities.
Ramli said the achievement was testament to the dedication and hard work of the staff of BHIC, Boustead Naval Shipyard Sdn Bhd and the navy.
“The LCS entering water for the first time is a highly significant moment in shipbuilding. We have gone through a long, complex and challenging journey to reach this point. The LCS is one of our key programmes.
“Not only are we building the vessels at our own facilities, we have also roped in 20 companies under our vendor development programme. We expect to grow the number of vendors involved in this project.”
Three local vendors are designing the ship’s equipment and building a sub-system.
Ramli said the first ship was always the most challenging to build as BHIC needed to design the vessel according to specifications.
“Then, we have to get the supply chain in place. After the launch of the ship, it will be outfitted, followed by a one-year trial before it can be delivered to the navy.
“The ship needs to be provisioned for trials to measure its performance, equipment, speed and stability aspects.
“Our current design is done virtually. Everything is calculated by computer and tank-tested. But a lot needs to be done,” he said.
BHIC had also successfully delivered six NGPV in 2012, when parent company Boustead Group continued undertaking works for the contract secured in 1998 by the previous company, Penang Shipbuilding and Construction Industries Bhd (PSCI).
Boustead Group acquired a major stake in PSCI in 2005.
Ramli said BHIC was also keen to explore the opportunity to build MRSS.
“This is a versatile vessel capable of undertaking movement of forces and supporting disaster relief work. It is able to accommodate numerous helicopters, tanks, vehicles and hospital facilities,” he added.