Singapore shipyard group Seatrium has sold its AmMFELS yard located at Brownsville, Texas, for a consideration of S$65m ($50.6m) to Karpower Valley, a related party of Karpowership.
Seatrium stated that the accretive divestment would allow the company to enhance capital and operational efficiencies while unlocking value from one of its surplus facilities.
Following the sale, Seatrium will transition its strategic presence in the US to focus on engineering innovation and technology capabilities through its technology centres and offices located in Houston and a service centre in Mississippi.
The consideration shall be satisfied in cash, of which S$50m ($38.95m) is deferred and to be paid one year after closing. The book value of the divested assets as of June 30, 2025, sold on an “as is, where is” basis, is approximately S$39m ($30.4m).
The completion of the divestment is subject to customary closing conditions, including the transfer of the lease to the new owner by the Port of Brownsville. The Singapore firm said it remains committed to completing all ongoing projects at the yard by the end of 2025.
“Notwithstanding the divestment, the US market remains important to us. We will continue to leverage our global footprint and integrated One Seatrium Delivery Model to deliver world-class solutions to our US-based and global customers in the offshore and energy sectors,” said Chris Ong, CEO of Seatrium.
