Yangzijiang Secures Two VLGC Orders

Maritime Activity Reports, Inc.

November 4, 2015

Image by Yangzijiang Shipbuilding

Image by Yangzijiang Shipbuilding

 The Singapore-listed and China-based shipbuilder Yangzijiang Shipbuilding has secured new orders worth $730m, including two very large gas carriers, between September and October.

The  two 84,000 cbm very large gas carriers (VLGCs) were ordered by Shanghai Zhenrong Energy.
Yangzijiang had been in talks to secure the two VLGCs since early this year, and the latest order confirmation has reinforced the company’s progress into building higher specification and higher value ships.
Apart from the two VLGCs, the orders include four 11,800 TEU container ships ordered by Pacific International Lines (PIL), four 3,800 TEU boxships for Hamburg Sud and two 1,900 TEU ships for Rickmers Group.
In addition, the four 9,700 TEU boxships announced in August 2015 have each been changed to 11,800 TEU, accompanied by increments in contract value.
”The Group has continued to see a healthy flow of new orders amid the weak market. As at 30 September 2015, the Group had an outstanding order book of USD4.8 billion, comprising 107 vessels. The delivery of the outstanding order book is scheduled to optimize the use of yards’ facilities up to 2018,” Yangzijiang said in its report.
”The oversupply situation for container ships and dry bulkers is expected to continue, and the competition on the market has intensified,” said Ren Yuanlin. Executive Chairman of Yangzijiang Shipbuilding (Holdings) Ltd.
He said that while the demand growth for traditional vessels has slowed down, demand for high-technology, more sophisticated and green vessels has become more promising. "We have included LNG carriers and VLGC in the product line, and these high value-added vessel types are expected to provide crucial support for our sustained growth," he added.
The Chinese shipbuilding industry is going through one of the most challenging years in recent history, as the industry order flow, outstanding orderbook and vessel delivery numbers showed. 
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