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Yangzijiang books in $832m worth of newbuilds year-to-date

Yangzijiang books in $832m worth of newbuilds year-to-date
Despite a global downturn in newbuilding orders in H1 Chinese yard Yangzijiang Shipbuilding secured $832m in new orders year-to-date, more than it did in the whole of the previous year.

Singapore-listed Yangzijiang booked in 33 new shipbuilding orders worth $832m so far this year bringing its total orderbook to $4bn. In the first half of the year the shipbuilder inked 19 shipbuilding contracts for $450m.

July proved to be particularly good for Yangzijiang with it adding a further 14 shipbulding contracts worth $381m

“Through innovation and introducing new vessel products, we maintained a healthy order book backlog when the market was weak, and we are making good progress in order taking when market starts to recover,” said Ren Yuanlin, executive chairman of Yangzijiang.

The new order wins come against a background of a declining newbuilding market in the first half of 2017 with 245 newbuilds ordered compared to 254 in the same period in the previous year according to VesselsValue.

For the first half of 2017 Yangzijiang reported a 61% jump in net profit of RMB1.39bn ($206m) compared to RMB863.4m in the same period in 2016.

Looking ahead Ren is upbeat on the impact new global shipping regulations and China’s One Belt One Road will have on the shipbuilding sector.

“As China’s Belt and Road initiative gains momentum, it will further stimulate international trade,” Ren said.

“The rules and regulations enforced by the International Maritime Organization are expected to have profound impact to the shipbuilding and shipping industries, both in terms of triggering demand for green vessels, and changing the landscape of the industry.”