China's Yangzijiang Shipbuilding (YZJ Group) is launching a new domestic yard venture with Japan's Mitsui E&S Shipbuilding (MES) and Mitsui & Co.
The idea is to expand its customer base with "diversified vessel types and new areas of shipbuilding business," it said.
The venture will draw on MES' technological strength, Mitsui’s sales capabilities and Yangzijiang’s shipbuilding capabilities, a statement read.
The company wants to tap into the long-term growth in the shipbuilding market, Singapore-listed Yangzijiang added.
Registered capital will be $99.9m initially, with the final investment expected to be $299m.
Yangzijiang will hold 51% of the operation, which will focus on a "wide range" of merchant vessel types.
It will have its production base at Yangzijiang’s existing Taicang yard in Jiangsu, China, and is expected to commence operations in April 2019.
Yangzijiang executive chairman Ren Yuanlin said: "The new joint venture is expected to consolidate MES’s advanced shipbuilding technology and our cost-effective shipbuilding capability.
"We are optimistic on China’s demand for LNG import and LNG carriers.
"The establishment of the new joint venture will enhance YZJ Group’s competitiveness and preserve the dominant position for Chinese shipbuilders in the ongoing consolidation of the global shipbuilding industry."
Second venture with Mitsui
Last month, Yangzijiang said it was setting up a new joint venture with Mitsui & Co in Panama.
The pair will invest $13.2m in the company, which they will jointly own.
Details were vague, but YZJ said it wanted to draw on the "privileged access" of Mitsui to shipowners, together with its extensive experience in shipowning, chartering and sale and purchase of vessels.
"The new joint venture company is aimed to satisfy the diversified needs of our global customers through delivery of top-notch quality and performance vessels," it added.
"Further capital injection may be made in accordance with approved investment opportunity, relevant proposal and implementation plan," Ren said at the time.
