Yangzijiang Shipbuilding to Expand Facilities for LNG and Clean Energy Vessels

Yangzijiang Shipbuilding, a prominent Singapore-listed Chinese shipbuilder, has announced plans to expand its facilities with a focus on LNG and clean energy vessels. This initiative is part of the company’s broader strategy to enhance its capabilities in the growing market for environmentally friendly maritime solutions, according to Seatrade Maritime.

Expansion Details

• Land Acquisition: Yangzijiang plans to acquire 866,671 square meters of land in Xinqiao Park, part of the Jingjiang Economic and Technological Development Zone in Jingjiang City. This new base will be dedicated to the manufacturing of clean energy vessels, including LNG ships.
• Strategic Location: The newly acquired land features 1,320 meters of shoreline on the Yangtze River and is located adjacent to the shipbuilder’s existing Jiangsu Yangzi Xinfu Shipbuilding facility. This proximity will facilitate seamless integration of new facilities, thereby boosting productivity and operational efficiency.
• Investment: The company plans to invest RMB 3 billion (approximately $412.8 million) over the next two years in this expansion project.

Company’s Current Status and Future Plans

• Record Orderbook: As of late May, Yangzijiang boasts a record orderbook value of $16.1 billion, comprising 193 vessels scheduled for delivery by 2028, totaling 7.45 million gross tons (gt).
• Annual Target: By late May, the company had achieved 74% of its annual target for new orders, securing contracts for 38 vessels with a combined value of $3.3 billion.
• Focus on Green Products: Approximately 54% of the new orders are for green products, primarily including methanol dual-fuel vessels, LPG carriers, and Very Large Ethane Carriers (VLECs).

Statement and Strategic Vision

In a statement to SGX, Yangzijiang highlighted the strategic advantages of the new facility’s location. “This proximity will enable us to seamlessly integrate new facilities, thereby enhancing both productivity and operational efficiency,” the company stated.

Yangzijiang’s expansion reflects its commitment to sustainable maritime practices and positions it to capitalize on the growing demand for clean energy vessels. The investment in new facilities underscores the company’s forward-thinking approach and dedication to maintaining its competitive edge in the global shipbuilding industry.

This strategic move not only supports the company’s growth ambitions but also contributes to the broader industry shift towards more sustainable and environmentally friendly maritime solutions.