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Yangzijiang inks new order contracts for 5 vessels

CHINESE shipbuilder Yangzijiang Shipbuilding inked new order contracts for five vessels, including three 82,000DWT bulk carriers and two 325,000DWT bulk carriers.

One of the orders for the 82,000DWT bulk carriers was placed by Kambara Kisen of Japan, which has its own shipbuilding company under Tsuneishi Holdings Corporation.

The 82,000DWT bulk carriers will be built at the group’s Taicang yard, where Jiangsu Yangzi-Mitsui Shipbuilding is based. The customer for the two 325,000DWT bulk carriers is also from Asia, revealed Yangzijiang.

Earlier in August, the group had announced the orders for two 325,000DWT bulk carriers. Together with the five announced today, Yangzijiang has signed new order contracts for seven vessels worth US$395 million so far in the third quarter of 2019.

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Ren Letian, CEO of the group, said: “As ship owners gradually firm up their plan on how to cope with the IMO2020 emission rules, we saw a surge in enquiries for the building of new vessels. We have successfully turned several of these enquiries into new orders, including orders from Japanese shipowners who are well-known for their high standard on quality.”

He added that the group is working on the negotiations of other potential orders and that Yangzijiang is in an “advantageous position to ride the momentum” as market sentiment recovers.

Yangzijiang saw stock turbulence last month, with its shares tanking to a year’s low of 86 Singapore cents on Aug 15, on the back of news that its founder and executive chairman Ren Yuanlin was granted leave to focus on “assisting in a confidential investigation carried out by certain PRC governmental authorities”.

Providing no further details on the probe, it added that none of its directors, including Mr Ren, were the subject of the investigation.

The stock price has since rebounded – Yangzijiang closed at 94 Singapore cents on Wednesday, up 3.5 Singapore cents or 3.87 per cent.

It remained the most active counter on the Straits Times Index with 60.8 million shares changing hands.