Yangzijiang Shipbuilding, a prominent Singapore-listed Chinese shipbuilder, has announced plans to expand its shipbuilding facilities with a significant investment of $412 million. This strategic expansion aims to capitalize on the robust demand for newbuilds, with a particular emphasis on LNG and clean energy vessels.
The expansion project involves acquiring 866,671 square meters of land in Xinqiao Park, part of the Jingjiang Economic and Technological Development Zone in Jingjiang City. The new site will serve as a base for manufacturing clean energy vessels, including LNG carriers. The land boasts 1,320 meters of shoreline along the Yangtze River, situated adjacent to Yangzijiang’s existing Jiangsu Yangzi Xinfu Shipbuilding facility. This proximity is expected to facilitate seamless integration of the new facilities, enhancing both productivity and operational efficiency, as stated by Yangzijiang in their announcement to the Singapore Exchange (SGX).
The company plans to invest RMB3 billion (approximately $412.8 million) in this expansion over the next two years. As of late May, Yangzijiang has reported a record order book value of $16.1 billion, comprising 193 vessels scheduled for delivery by 2028, totaling 7.45 million gross tons.
In terms of new orders, the company has made significant progress, achieving 74% of its annual target by securing contracts for 38 vessels with a combined value of $3.3 billion. Notably, around 54% of these new orders are for green products, primarily including methanol dual-fuel vessels, LPG carriers, and Very Large Ethane Carriers (VLECs).
Yangzijiang’s commitment to expanding its capabilities in the clean energy sector aligns with the global maritime industry’s shift towards more environmentally sustainable operations. The company’s strategic investment in LNG and clean energy vessels is expected to position it as a key player in the industry’s green transition.
