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Yangzijiang forms US$99.9 million joint venture with Japanese peers to build commercial vessels in China
MAINBOARD-LISTED Yangzijiang Shipbuilding (Holdings) has set up a joint-venture shipbuilder in China, with Japan's Mitsui E&S Shipbuilding and Mitsui & Co as partners, it announced on Thursday.
Yangzijiang will own 51 per cent of the joint venture, which will produce commercial vessels from April 2019 out of its Taicang yard in Jiangsu, China.
According to the company, the registered share capital of the joint venture could be as much as US$99.9 million, while the total capital to be employed could go up to US$299 million.
Yangzijiang executive chairman Ren Yuanlin said in a statement that the partnership would consolidate its cost-effective shipbuilding capability and Mitsui E&S Shipbuilding's advanced technology.
"We are optimistic on China's demand for liquefied natural gas (LNG) import and LNG carriers," he said.
"The establishment of the new joint venture will enhance Yangzijiang Group's competitiveness and preserve the dominant position for Chinese shipbuilders in the ongoing consolidation of the global shipbuilding industry."
Yangzijiang closed down by S$0.02, or 1.6 per cent, to S$1.23, before the announcement.