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DCD's Elgin Brown & Hamer acquisition creates SA's largest marine repair firm.

 

A deal enabling engineering group DCD to bring together SA's largest ship and oil rig repair companies, DCD Marine and Elgin Brown & Hamer (EBH), has been given the thumbs-up by the competition commission. The deal will lift DCD Marine's annual turnover by R500m to about R1bn, says Rob King, MD of DCD, formerly DCD-Dorbyl.

 

King says the acquisition adds two key harbours to DCD Marine's reach: Durban and Namibia's Walvis Bay. EBH operates large floating docks in both harbours. "The harbours bring us closer to the [oil and gas] drilling fields on Africa's west and east coasts," says King. At EBH's request the deal price has not been disclosed, he adds.

 

DCD Marine's home base is Cape Town harbour, where it operates from A Berth, a 42700m² oil and gas rig modification and repair facility completed in late 2010. "DCD is positioned as a world-class shipyard," says King.

 

DCD Marine also operates out of Saldanha Bay, East London and the port of Ngqura (Coega).

 

The acquisition of EBH also provides DCD Marine with an entry into the cargo vessel repair sector, in which EBH has been active for more than 130 years. "This will enable better utilisation of our skills base," says King. "I am confident we will be able to undertake larger projects than EBH."

 

DCD Marine's expansion holds the potential to create 3000 new job opportunities, believes King. One oil rig project running over a period of about two months can, he says, provide work for anywhere between 800 and 1500 people. "Our target is two to three major projects annually in Cape Town," says King. "There is also a lot of activity in the cargo [ship] sector."

 

DCD itself is on a drive to increase SA's shipyard sector's skills base. "Last year we trained 600 welders," says King. DCD has just opened a R4m facility in Cape Town that will train 150 artisans a year in fields such as boiler making and fitting and turning, he adds.

 

"Many people we train don't work for us but add to the solid core of skilled artisans certified to work on gas and oil rigs," says King. "We intend to establish training facilities in Durban, Coega and Walvis Bay."

 

Taken from the Financial Mail website 23 August 2012.
http://www.fm.co.za/fm/2012/08/23/dcd-bulks-up-in-ship-repair

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