Yangzijiang wins new shipbuilding orders worth S$685.9m

A ship under repair at a Yangzijiang shipyard in China.
A ship under repair at a Yangzijiang shipyard in China.PHOTO: YANGZIJIANG

SINGAPORE - Mainboard-listed Chinese shipbuilder Yangzijiang Shipbuilding (Holdings) has won orders for six dry bulk carriers worth a combined US$510 million (S$685.9m).

The 400,000 DWT very large ore carriers (VLOCs) are the largest dry bulk carriers ever awarded to the group, the shipbuilder announced on Wednesday (April 13).

The orders were placed by ICBC Leasing, "marking a rare case where a state-owned ship owner in China places orders with a private shipyard", the company added. ICBC Leasing is a wholly owned subsidiary of ICBC, China's largest state-owned commercial bank.

They are part of the 30 VLOC orders placed by major Chinese ship owners, including ICBC Leasing, after they were contracted by mining group Vale to transport iron from Brazil to China over a period of up to 27 years.

Other than Yangzijiang, all the other shipbuilders that received the VLOC orders are state-owned companies, said Yangzijiang.

"These orders will be a boost to both our order book, especially in a weak market, as well as to the morale of Yangzijiang's people," the company said.

The VLOCs are scheduled for delivery from 2018 to 2019.