Mainboard-listed China-based shipbuilding group Yangzijiang Shipbuilgin (YZJ) has entered into an agreement with a Japanese shipowner for the building and delivery of ten 3,500TEU containerships on Nov 5.
Out of the orders, five are firm orders worth some US$198 million ($269.5 million) in total. The five vessels are accompanied by five option orders for identical vessels.
If all exercised, the batch of orders will be worth a total of US$396 million.
The orders will be built at the group’s New Yangzi yard and will be delivered from November 2022.
The new order wins brings the group’s year-to-date orders to US$1.03 billion.
“Our year-to-date new order wins of over US$1 billion is more than that for the whole year 2019. This was a remarkable achievement especially considering that the global new shipbuilding orders declined by about 50% in 9M2020 in a depressed market,” says the group’s executive chairman and CEO Ren Letian.
“The trade tension in recent years and the Covid-19 pandemic gave rise to increased demand for intraregional and more expedited shipping services, and smaller, energy-efficient vessels are good fits for such demand. This batch of orders will extend our track record of building a rich portfolio of containerships with supreme features. Like many of our other customers, this Japanese customer has been a repeat, satisfied customer of Yangzijiang. We look forward to furthering our harmonious business relationship with our customers by delivering high-quality vessels,” he adds.
As at 4.48pm, shares in YZJ are trading flat at 94 cents.
