Yangzijiang Diversifies into LNG Vessel Buildiing
Yangzijiang Shipbuilding (Holdings) Limited “Yangzijiang” or “the Group” one of PRC’s leading and most enterprising shipbuilder listed on the SGX Main Board, is pleased to announce that the Group has secured new shipbuilding orders from JHW Engineering & Contracting Limited, a subsidiary of JACCAR Holdings, the company that owns EVERGAS, a world leader in ethylene and ethane gas transportation, to build two 27,500CBM LNG (Liquefied Natural Gas) carriers.
With downpayments duly received, the two LNG vessels worth US$135 million are now effective orders and included in Group’s order book. The orders are schedulded to be delivered in 2017.
Commenting on the new LNG order, Mr. Ren Yuanlin, Executive Chairman of the Group, said, “Yangzijiang has entered a relatively mature stage in building bulk carriers and containerships and it has been on the management’s agenda to formulate sustainable product strategy. Related research shows that global LNG market will grow from 238 Mtpa in 2014, to 420 Mtpa in 2020, and is expected to further increase to 500 Mtpa in 2025. The strategy to grow LNG vessel business aims to capture the stable medium to long term demand with its promising outlook.
We have been preparing for the construction of LNG carriers for some time, and we are very pleased to activate it. The order is an endorsement from client on our reputation, and overall shipbuilding and financial capabilities.
We understand that LNG carriers are technically more demanding than bulk carriers and containerships; we will take necessary steps to ensure timely delivery and maintain the highest quality, make a solid launch in the new segment, and gradually grow it stronger.”