It plans to invest an estimated 3 billion yuan in capital expenditures for the project
MAINBOARD-LISTED shipbuilder Yangzijiang Shipbuilding has entered into a framework agreement with the local government of Jingjiang City in China’s Jiangsu Province to acquire land for the establishment of a new clean energy ship manufacturing base.
The land – which is about 866,671 square metres (*see amendment note) – is located in Xinqiao Park within the Jingjiang Economic and Technological Development Zone. It features approximately 1,320 m of Yangtze River shoreline, “offering a unique opportunity for efficient expansion”, said the group in a bourse filing on Monday (Jul 15).
The group added that the land is strategically located adjacent to the existing Jiangsu Yangzi Xinfu Shipbuilding Co, which will enable it to “seamlessly integrate new facilities, thereby enhancing both productivity and operational efficiency”.
Yangzijiang Shipbuilding said it plans to invest an estimated three billion yuan (S$554.3 million) in capital expenditures over the next two years to complete this project, taking into account the long-term prospects of liquefied natural gas and other clean energy vessels.
This is subject to the group being satisfied with the outcome of the feasibility study on the project, which is currently being conducted.
The group added that the project’s implementation will be contingent on approval from various governmental agencies. Following approval, the project will be executed in phases to ensure efficient resource allocation and compliance with regulatory requirements.
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Shares of Yangzijiang Shipbuilding closed at S$2.30, up S$0.04 or 1.8 per cent on Monday, before the announcement.
*Amendment note: A previous version of the article stated that the land acquired by Yangzijiang Shipbuilding was about 526 hectares. The company has clarified that it is about 866,671 square metres.
