Singapore-based Yangzijiang Shipbuilding Holdings has signed a joint venture agreement with Qatar Investment to set up two companies.
Under the joint venture, one company will be established, YZJ Offshore Engineering in Singapore (YOEPL), and YZJ Offshore Engineering (YOECCL) in China.
YZJ Offshore Engineering will be an offshore oil and gas industry service provider, performing marketing, procurement, engineering and management consultancy roles, while YZJ Offshore Engineering’s main businesses will be producing and repairing offshore and marine vessels and platforms.
Yangzijiang Shipbuilding Holdings and Qatar Investment will jointly invest $110m in YOEPL initially and the company will be equally owned.
YOEPL and Yangzijiang’s wholly owned subsidiary will later jointly invest $250m in YOECCL, with the former investing $100m with a 40% stake and Yangzijiang’s wholly owned subsidiary investing $150m with a 60% stake.
Yangzijiang Shipbuilding Holdings said the investment is in the best interest of the group to enhance group’s shipbuilding capabilities in design and construction of offshore platforms and vessels as well as advance the group’s development and competency strategies.
The company said the investment will not have any significant impact on the earnings and net assets of the group for the financial year ending 31 December 2011.
Yangzijiang Shipbuilding (Holdings) is involved in shipbuilding with shipbuilding bases across the Yangtze River and producing a range of commercial vessels, containerships, bulk carriers and multipurpose cargo vessels.