ABG to buy Vipul Shipyard

The country's biggest private sector shipbuilder ABG Shipyard today said it will acquire Vipul Shipyard for an undisclosed amount. With the acquisition, the company would be able to enhance its shipbuilding capacity from the present 32 to 40 vessels on a modular basis in the future, ABG Shipyard said in a communique to the Bombay Stock Exchange.

 "This is a strategic acquisition for ABG considering the location of Vipul, which is adjacent to the existing shipbuilding facility

of ABG at Surat and is a move to augment its resources for further consolidation of shipbuilding capacity in the growing segments of offshore, coastal shipping and other avenues of shipbuilding," ABG's spokesperson said.

 ABG Shipyard has signed a Memorandum of Understanding to this effect, pursuant to which a large portion of Vipul's land with good waterfront would be added to ABG's resources along with a slipway and other plant and equipment for shipbuilding.