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.”
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.
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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.