China-based Yangzijiang Shipbuilding (YZJ) has signed a shareholder agreement with Japan’s Mitsui E&S Shipbuilding (MES-SC) and Mitsui to establish a shipbuilding business.

The joint venture (JV) will be established following the required procedures, including examinations.

It will combine YZJ’s production capacity, Mitsui’s expertise in sales, and MES-SC’s advanced technology to create a shipbuilding business that meets global standards.

Yangzijiang Shipbuilding executive chairman Ren Yuanlin said: “The new joint venture is expected to consolidate MES-SC’s advanced shipbuilding technology and our cost-effective shipbuilding capability.

“The establishment of the new joint venture will enhance YZJ Group’s competitiveness and preserve the dominant position for Chinese shipbuilders in the ongoing consolidation of the global shipbuilding industry.”

“The establishment of the new joint venture will enhance YZJ Group’s competitiveness and preserve the dominant position for Chinese shipbuilders.”

Once formed, the proposed JV will initially have a registered share capital of up to $99.9m, while the total amount of capital to be invested in it could go up to $299m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Yangzijiang will own a 51% share in the JV, which is scheduled to begin operations by April with its production site at the Taicang yard in Jiangsu, China.

The JV is expected to be benefitted from the potential Chinese demand for liquefied natural gas (LNG) import and LNG carriers.

Yangzijiang entered a JV agreement with Mitsui last month to establish a company in Panama.

Both the parties will have a 50% stake in the JV, which intends to combine Yangzijiang’s shipbuilding expertise with Mitsui’s shipowner accessibility, as well as its experience in ship-owning, chartering, sale and purchase of vessels.