India's publicsector shipbuilder, Mazgaon Dock Shipbuilders Limited (MDL) has announced thatit has acquired a controlling stake in Colombo Dockyard plc (CDPLC), SriLanka's largest and most established shipyard. The investment of US$52.96-millionwill be made through a combination of primary investment and secondary sharepurchases, which include the acquisition of shares of existing majorshareholder, Onomichi Dockyard Co., Ltd. Upon completion of the process, CDPLCwill become a subsidiary of MDL, subject to customary regulatory approval andtermination conditions.

The proposedacquisition is MDL’s first international venture. Strategically located in thePort of Colombo, CDPLC provides MDL with a strong foundation of operations inthe Indian Ocean region, which is one of the busiest and geopolitically significantmaritime corridors in the world.

CDPLC brings MDLmore than five decades of experience in the fields of shipbuilding, ship repair,and heavy engineering. The company has experience delivering complex offshoresupport vessels, cable-laying vessels, tankers, and patrol vessels to buyers inJapan, Norway, France, the UAE, India, and several African nations.

It is the onlyshipyard in Sri Lanka that offers integrated services ranging from in-housedesign and construction to advanced repairs and marine steel fabrication. CDPLCoperates four drydocks and multiple berths that are capable of handling shipsup to 125,000 DWT and complies with ISO and classification standards, such as theDNV, Lloyds Register, ABS, and IRS.

In addition totechnical strength, CDPLC is actively building a pipeline of more than $300-millionin orders, including cable laying vessels, multipurpose utility vessels, andnewly built fleet support vessels. With MDL’s support – especially technologyexchange, availability of Indian supply chains, and access to Indian andrelated maritime markets, CDPLC is well positioned for economic turnover andlong-term growth.