Singapore: Another Chinese shipyard has taken a firm move into the owning arena as a way of getting through the downturn. Singapore-listed JES International has announced it has taken a 30% stake in Hong Kong-headquarted Great Dragon International Shipping for what it describes as a swap deal for a nominal fee. Shanghai Wei Lun Shipping will hold the remaining 70% stake. Jin Xin, the ceo of JES, has appointed his daughter Jin Yu onto the board of the shipowning jv.
Great Dragon has just one ship on its books, the 79,400dwt Great Dragon 9 panamax bulker, recently delivered from JES.
JES, like most Chinese yards has had a woeful year to date. Its only newbuild contracts in 2012 came last week.
“What JES is doing is buying into an established owner so that it can use that company to help finance further shipbuilding contracts for other owners who are looking at alternative ways of expanding their fleets,” commented one shipbuilding analyst. A raft of Chinese shipyards have opened shipowning subsidiaries in Hong Kong this year, including Sinopacific, CSSC and Sainty Marine. [25/09/12]