Restructured Yangzhou Dayang Shipbuilding has landed its first order.
Avic International Leasing has signed up for eight 63,500-dwt ultramax bulkers. It is said to be the Chinese yard’s first newbuilding contract after two years of restructuring and a change of ownership.
The four resale vessels are half-built newbuildings at Dayang. These newbuildings were cancelled or abandoned by shipping companies during the dry bulk downturn
Dayang officially came under the control of Chinese trading house Sumec and two affiliates — Meida Asset Management and Yangzhou Yunhe XingCheng Development — in July. The yard was one of three in the former Sinopacific Shipbuilding Group.
Sumec and its affiliates provided nearly CNY 1.9bn ($274m) to take over Dayang. Meida holds a 45% stake, while Sumec controls 40%.
Resales in the mix
Shipbuilding players say Avic’s contract includes four new vessels and four resales. “The four resale vessels are half-built newbuildings at Dayang,” said one shipbuilding source. “These newbuildings were cancelled or abandoned by shipping companies during the dry bulk downturn.”
Dayang will deliver the octet by the end of 2020, according to shipbuilding players. It has not been disclosed how much Avic is paying for the vessels but they will be built to IMO Tier II standards.
The Chinese leasing company has been in contact with potential charterers, including Cargill. Sources believe the first four newbuildings are likely to be taken by the US commodities trader.
In May, Avic ordered two 82,000-dwt bulker newbuildings at state-owned Jinling Shipyard for delivery in 2020, on the back of a long-term charter with Singapore’s SDTR — a joint venture between Shandong Shipping and Transcenden Global.
Avic has also been involved in Navig8’s four 110,000-dwt LR2 newbuildings at New Times Shipbuilding and five product carriers for Scorpio Tankers.
In addition to Avic’s ultramax order, Dayang has secured deals for three 61,000-dwt newbuildings from domestic companies for 2020 delivery. Rongda Shipping has ordered two vessels, while Taizhou Yongan signed up for one ship.
