Chinese shipbuilders Yangzijiang Shipbuilding and China Ocean Industry have signed an agreement to establish a shipbuilding joint venture.
The joint venture agreement follows the two parties signing an agreement in March to collaborate on the future development of China Ocean Industry’s subsidiary yard Jiangzhou Union Shipbuilding, where operations had been suspended due to financial difficulties.
Under the latest agreement, Yangzijiang will invest RMB60m ($9m) to occupy 60% of the jv, while China Ocean Industry and Wuxi Tianshi will take the remaining 30% and 10% respectively.
The two parties have set a target for the jv to achieve an annual construction capacity of four to six 20,000 dwt vessels within two to three years.
Yangzijiang will also establish a ship export company to manage the ship export operations for the yard and assist the yard to complete the construction of four undelivered ships and seek buyers. Proceeds from the sale of the vessels will be used to repay bank loans.
Last week, China Ocean Industry entered into a debt restructuring deal with Zhejiang Ouhua Shipbuilding for another subsidiary yard Jiangxi Shipbuilding.