Today, Imtech announced that its Marine unit will be involved in realisation of the Canadian government's National Shipbuilding Procurement Strategy (NSPS) programme as a technology partner of Seaspan Vancouver Shipyards. This programme involves construction of a large number of navy, coast guard and research vessels. Imtech will be involved in the 'non-combat' segment and expects to work on a total of 8 vessels. Investment in this part of the programme amounts to circa € 8bn. Imtech’s share could be worth around € 200m in total, with execution taking place during a period of several years, according to a spokesperson. Imtech is Seaspan's intended partner for supply of platform automation, electrical solutions, electric propulsion and air conditioning and climate control systems. “The formal granting of this partnership will considerably enlarge the company's marine order book in the longer term”.
GTM acquisition already pays off:
On 16 September, Imtech acquired Canadian marine company Groupe Techsol Marine (GTM), a company with circa € 20m in sales per annum at the time. We already learnt at that time that the acquisition will facilitate contract wins because the Canadian government has local content requirements. This is proven sooner than expected, which is positive. GTM brings in local content and a brand new, state-of-the-art production facility. Imtech brings in its expertise in electrical and mechanical systems, and platform automation.
Positive for sentiment:
Although the precise value of these contracts is not yet clear, the indication of around € 200m is very nice, as it should provide several years of work for the Marine unit. As such, we consider today’s news positive, supporting the investment case. We leave our estimates and target price unchanged.