China's Yangzijiang Forms Shipbuilding JV with Japanese Firms

Singapore-listed Chinese shipbuilder Yangzijiang Shipbuilding has signed an agreement to form a joint venture with Japan’s Mitsui and Mitsui E&S Shipbuilding (MES-SC), it said October 11.

"The new joint venture is expected to consolidate MES-SC’s advanced shipbuilding technology and our cost-effective shipbuilding capability. We are optimistic on China’s demand for LNG import and LNG carriers,” Yangzijiang executive chairman Ren Yuanlin said, adding that establishment of the new joint venture will enhance company's competitiveness and preserve “the dominant position for Chinese shipbuilders in the ongoing consolidation of the global shipbuilding industry."

The new joint venture firm will have registered share capital of up to $99.9mn, and total capital expected to be employed could amount to $299mn, it said. Yangzijiang will hold 51% stake in the new firm which will have its production base at Yangzijiang’s existing Taicang yard in Jiangsu, China, and is expected to commence operations in April 2019.

Established in 1956, Yangzijiang Shipbuilding is one of the largest private shipbuilding companies in China. With four shipyards in Jiangsu province, China along the Yangtze River, it produces a broad range of commercial vessels including large containerships, bulk carriers and LNG carriers.