Singapore's Kim Heng Holdings says it has signed an agreement worth $450 million with Iran Marine Fund to finance offshore facilities and other maritime ventures. 

The non-binding agreement calls for manufacturing of platform supply vessels, offshore cranes, chemical tankers, and also aluminum and fiberglass vessels.

Tan Keng Hoe Melvin, general manager for supply chain management for Kim Heng, said "maximum domestic production in Iran has been emphasized" for the projects.

In a press release, Kim Heng said the partnership could include shipbuilding, chartering of Kim Heng's assets, purchasing of offshore vessels, rig management and offshore maintenance.

It said the commercial terms and form of financing for each project will be negotiated on a project by project basis and documented in definitive agreements.

“As such, there is no certainty that any of the projects will materialize or that any definitive agreements could be entered into," it added.

The Iran Marine Fund is a state-owned enterprise of the Ministry of Industry, Mining and Trade.

Other foreign companies have also expressed their readiness to invest in Iran’s fast-growing shipping industry as well as ports.

Last month, head of South Korea Maritime Institute Sang Gui Kim said his company can cooperate with Tehran on shipbuilding, maintenance and repair of naval fleet and preparing ports for operation.

He visited Iran along with South Korean President Park Geun-hye who headed a large delegation of business owners and traders on a trip to Tehran.

By Press TV