In Focus: Grand Banks expands Malaysia facility by more than 25 per cent

Malaysian boatbuilder Grand Banks is expanding its production facility in Malaysia by more than 25 per cent, to handle bigger luxury boats, increase capacity and accelerate boatbuilding activities.

The expansion, which will cost approximately US$6.42 million, is expected to be completed by August 2024.

The SGX Mainboard-listed luxury yacht builder says the proposed new single-storey facility will be built on the existing land plot at its yard in Pasir Gudang in Johor state and will add 143,300 sqft (13,313 sqm) of usable floor space to the 550,000 sqft (51,097 sqm) currently, bringing the total to nearly 700,000 sqft (65,000 sqm).

Grand Banks says it has received the requisite approvals from Malaysian authorities, and construction is expected to commence in August 2023. The group says it will fund the expansion with a mix of internal resources and bank loans.

The expansion is a major part of Grand Banks’s strategy to ramp up boat construction and improve delivery times.

Since the onset of the pandemic, demand for its three luxury yacht brands — Grand Banks, Palm Beach, and Eastbay — has risen.

The group has been introducing new designs and has stepped up marketing efforts, especially in North America, with recent participation in the Palm Beach International Boat Show.

In 2022, the Grand Banks group purchased the marina and service yard opposite its USA headquarters in Florida, to help expand its footprint in the US.

These efforts have helped to lift the net order book to SG$178.m (US$131.7m) as of 31 March 2023.