Chinese major private shipyard Yangzijiang Shipbuilding has entered into a joint venture agreement with Japan’s Mitsui E&S Shipbuilding to establish a new shipbuilding company in China.
The total registered capital of the new joint venture will be up to $99.9m, and is expected to be increased to $299m.
Yangzjiang will hold a 51% equity stake in the joint venture, which will focus on the construction of a wide range of commercial vessels. It will have its production base at Yangzijiang’s existing Taicang yard in Jiangsu, China, and is expected to commence operations in April 2019.
“The new joint venture is expected to consolidate MES-SC’s advanced shipbuilding technology and our cost-effective shipbuilding capability. We are optimistic on China’s demand for LNG import and LNG carriers. 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,” said Ren Yuanlin , executive chairman of Yangzijiang.
Last month, the two companies establish a joint venture in Panama.
Japanese yards have a number of Chinese ventures already. Kawasaki Heavy has facilities with Cosco in Nantong and Dalian, for instance, while Tsuneishi has a sizeable yard in Zhoushan.