Singapore-listed Yangzijiang Shipbuilding is expanding its shipbuilding capacity further by entering into a joint-venture agreement with Japan’s Tsuneishi Holdings.
The Re Letian-led shipyard disclosed it will acquire a 34% equity stake in Tsuneishi Group Zhoushan Shipbuilding for CNY 833.1m ($117.4m) through a private share allotment.
Yangzijiang said the greement marks a significant step in strengthening the relationship between the two shipyards, which share a commitment to sustainable growth and a focus on private-sector shipbuilding.
The Jiangsu-based company said the two companies have collaborated for many years in various areas of shipbuilding through their joint venture in Jiangsu Yangzi-Mitsui Shipbuilding. This latest development is expected to deepen their partnership further.
“This new joint venture will bring together our strengths in research and development, shipbuilding and supply chains. By combining our expertise, we’ll advance the latest shipbuilding technologies, enhance efficiency, and achieve great results together”, Yangzijiang chairman and chief executive Re Letian said.
Based in Zhoushan city of Zhejiang province, Tsuneishi Zhoushan was established in 2003 and is equipped with two slipways and one dry dock. The shipyard focuses on building bulkers, tankers and container ships of up to 100,000 dwt.
Yangzijiang is China’s largest privately owned shipyard and is set to expand its shipbuilding capacity by building a new ship manufacturing base.
In July, it signed an agreement with the government of Jingjiang City to acquire an extra area of nearly 867,000 square metres for a clean-energy shipbuilding site.
It plans to invest CNY 3bn ($413m) to build the facility over the next two years to construct LNG carriers and other clean-energy vessels.
The new base is next to Jiangsu Yangzi Xinfu Shipbuilding, enabling the company to “seamlessly integrate new facilities, thereby enhancing both productivity and operational efficiency”.
It plans to complete construction by the end of 2026.
Yangzijiang’s new base will have an annual production capacity of about 800,000 dwt, or an output of not less than $1.38bn.
Yangzijiang has signed 79 newbuildings worth $8.5m in the first half of 2024, achieving 188% of its annual target.
Its total outstanding orderbook stands at $20.2bn for 224 vessels and is filled up until 2028.
Yangzijiang reported that its net profit for the first half of this year grew by 77.2% year on year to a record high of CNY 3.06bn, due to higher shipbuilding activities and improved shipping charter rates.
