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Yangzijiang Shipbuilding inks US$1.15b deal

MAINBOARD-LISTED Yangzijiang Shipbuilding has inked a new US$1.15 billion shipbuilding contract for up to 10 vessels. 

These orders for dual-fuel 14,000 TEU (20-foot equivalent unit) container ships have a contract value of US$115 million each, said Yangzijiang in a regulatory filing on Monday. Two of these vessels are firm orders, while the remaining eight are options. They are scheduled to be delivered from mid-2022.

Yangzijiang said its latest deal is one of the largest orders - in terms of contract value - for the group to date. With them added to its order book, the group said it will see its yard facilities utilised at "a healthy rate" and have "a stable revenue stream" for at least the next two years.

"These new orders mark an encouraging start for Yangzijiang in 2020. Amid the coronavirus outbreak, which now has been labelled a pandemic, we will prepare for the worst, but hope for the best," said Ren Letian, the company's chief executive. 

"We appreciate our customer Tiger Group’s trust and support, with such a sizable order with Yangzijiang at a challenging time for both the industry and the world as it tackles the coronavirus outbreak," he added. 

Shares of Yangzijiang closed up 0.5 Singapore cent - or 0.63 per cent - to S$0.80 on Monday.