Leaptec Engineering Sdn Bhd (Leaptec), an indirect subsidiary of LBS Bina Group Bhd (LBS), today announced that it has entered into a Memorandum of Understanding (MOU) with Desan Deniz Ins. San. A.S. (Desan).
Under this MOU, both parties aim to co-operate to explore the feasibility and potential to construct and develop a shipyard business for ship repair and ship building with an expected project in three phases with a value of over RM2 billion in Tanjung Bruas, Melaka. Both Leaptec and Desan will also explore the possibilities of, among others, relevant authority’s support, subsidies and soft long-term finance.
The MOU will be effective from 13 April 2023 for a period of twelve months unless renewed by mutual agreement of the parties or when both parties enter into a definitive agreement.
The signing of the MOU took place at Desan’s head office in Istanbul, Turkey. LBS and Leaptec Group Managing Director Datuk Wira Joey Lim Hock Guan signed on behalf of Leaptec while Desan was represented by its Chairman Cenk İsmail Kaptanoğlu.
Established in 1970, Desan is a prominent Turkish shipyard solution provider principally involved in the business of construction and development of shipyards, maintenance and repair of ships, shipbuilding and other shipping related activities.
Under the current leadership of the third generation of the Kaptanoglu shipping family, Desan has expanded its ship repair and shipbuilding business to cover offshore business, naval vessels, all types of tankers, bulk carriers, tugboats and yachts.
Back in 2021, Leaptec signed a reclamation and development agreement with the Melaka state government to reclaim and develop 1,200 acres of land, which is part of the Melaka Waterfront Economic Zone that spans 25,000 acres along the coastline of Melaka state.
LBS and Leaptec Executive Chairman Tan Sri Lim Hock San said, “We are looking forward to our collaboration with Desan. We have considered various partners to work with in developing our Melaka reclamation project and are pleased to connect with Desan. Desan is well-known in the construction of shipyard businesses, shipbuilding, ship repair, maintenance, modernization, conversion and renovation for all types of commercial and naval ships and we believe that this business will be a suitable growth industry for our Melaka project.”