SINGAPORE (June 23): Mainboard-listed, China-based shipbuilding group Yangzijiang Shipbuilding (YZJ) has secured new shipbuilding orders for four vessels worth a total of US$102 million (S$142.2 million) on Tuesday.
The orders include two LNG-tank carriers and two 56,000DWT bulk carriers placed by Hong Kong’s Tiger Gas, and Shanghai Ganglu Shipping Co respectively.
The orders bring the group’s total value of orders to US$517 million so far in 2020.
The vessels ordered by Tiger Gas will be jointly designed by Yangzijiang and Tiger Gas, with energy-efficient features. The vessels will be fitted with dual-fuel engines, capable of carrying heavy-lift cargo for both the Yangzi River and the ocean. The first vessel is scheduled to be delivered by early 2022.
Shanghai Ganglu Shipping Co, a first-time customer of Yangzijiang, will utilise its vessels in the transportation of domestic trade in China, and will be designed by Shanghai Merchant Ship Design & Research Institute. The vessels are expected to be ready by March 2022.
“Our recent order wins reflected the significance of having a good reputation and a strong foothold in the Chinese shipbuilding market, while the economic disruption caused by COVID-19 lingers globally,” says Ren Letian, executive chairman and CEO of Yangzijiang.
“The LNG-tank carriers are the second major orders from Tiger Group, thanks to the confidence and trust of the key shareholder of the customer has in us. The development of this new generation of vessels will also help us grow our R&D capabilities with a focus on ‘green’ features. It is also encouraging to have Shanghai Ganglu as a new customer, whereby expanding the base of our Chinese customers further,” he adds.
In an operational update, Ren says the company’s work divisions have been running on extended shifts to achieve its major milestones.
“Yesterday, our inaugural 12,600TEU containership has started its trial voyage in the Yangtze River ahead of its scheduled delivery in July, as the largest trial-voyage vessel in the Yangze river this year. I am proud that we have made one technological breakthrough after another, in the pursuit of becoming a top-class shipbuilder in the world,” says Ren.
As at 1.07pm, shares in Yangzijiang are changing hands 0.5 cents lower, or 0.5% down, at 96.5 cents.
