KUALA TERNGGANU, Aug 23 (Bernama) -- MSET Shipbuilding Corporation Sdn Bhd, a leading shipbuilding and repair company in the East Coast, is aiming to build larger ships measuring up to 120 metres long when it moves into a new shipyard soon, its chairman Hasnan Abdullah said.

He said the state government would identify a new area which would be designated as the zone for maritime industry activities in the Kuala Terengganu area.

"We hope to get a new area to develop the shipping industry more actively in view of the increasing demand," he said at the launch of a 60-metre vessel "Tanjung Pinang 3" owned by Tanjung Kapal Services Sdn Bhd at the Pulau Duyong Shipyard here.

Tanjung Kapal Services had ordered for two vessels to be used for its petroleum and gas related activities at sea.

The vessels, including the Tanjung Pinang 3, were to be built at a cost of RM35 million each.

MSET Shipbuilding Corporation started building the ships in September last year.

The Tanjung Pinang 3 launched today is already 88 percent completed and is expected to be delivered to the owners in November.

The second vessel, which is already 87 percent complete, is expected to be launched in September.

Hasnan said that space was limited at the company's current shipyard and that the 100-percent Bumiputera owned company was capable of building only three ships measuring from 40 to 60 metres at any one given time.