On March 24, Yangzijiang Shipbuilding Group announced the completion of its investment in Zhoushan Changshi Shipbuilding. Zhoushan Changshi Shipbuilding has officially become an associated company of Yangzijiang Shipbuilding, with the latter holding a 34% stake.
In September last year, Yangzijiang Shipbuilding signed a joint venture agreement with Japan's Changshi Group to acquire 34% of Changshi Group's shares in Zhoushan Changshi Shipbuilding. The transaction price was approximately RMB 833 million, consistent with the audited net asset value of Zhoushan Changshi Shipbuilding of approximately RMB 2.45 billion as of December 31, 2023. The transaction amount will be paid entirely in cash, funded by Yangzijiang Shipbuilding's internal resources.
Yangzijiang Shipbuilding stated at the time that the group and Changshi Shipbuilding have always been deeply involved in the shipbuilding industry and are committed to promoting innovation and sustainable development. In recent years, the two sides have actively exchanged and interacted in shipbuilding-related fields and have established a foundation of friendly cooperation. The signing of this joint venture agreement with Changshi Group will have a far-reaching impact on the development of both parties.
Through this further deepened cooperation, both sides will actively leverage their respective advantages and resources in terms of capital, technology, talent, and supply chain. The collision and integration of ideas will open up new opportunities for both parties, bringing together strength to advance hand in hand. The ship of cooperation will sail steadily in the commercial sea, contributing to the prosperous development of the shipping industry.
Zhoushan Changshi Shipbuilding is a wholly-owned subsidiary of Changshi Group in China. Established in March 2003 on Xiushan Island, near Shanghai, which is convenient for mobilizing resources and equipment, it has a registered capital of US$73.4075 million and covers an area of 1.3 million square meters. Zhoushan Changshi Shipbuilding mainly engages in the construction of new ships and ship sections. It currently has 590 employees (approximately 3900 employees in affiliated companies).
Zhoushan Changshi Shipbuilding has two shipbuilding platforms and a 100,000-ton construction dock. It mainly builds bulk carriers of 30,000-100,000 deadweight tons, but also builds container ships, product tankers, and oil tankers. Since the construction of its first complete ship in 2007, Zhoushan Changshi Shipbuilding has built more than 280 ships of various types.
This is the second joint venture shipyard between Yangzijiang Shipbuilding and Changshi Group. Previously, Yangzijiang Shipbuilding and Changshi Group have jointly managed the joint venture company Yangzi Mitsui Shipbuilding since 2022. It is understood that Yangzi Mitsui Shipbuilding was established in 2019 and is jointly funded and operated by Yangzijiang Shipbuilding, Japan's Mitsui & Co., and Mitsui E&S Shipbuilding.
In 2021, Changshi Shipbuilding signed a share transfer agreement with Mitsui E&S Holdings. The transaction involved 49% of the circulating shares of Mitsui E&S Shipbuilding's merchant ship business and some subsidiaries and related enterprises, including the joint venture shipyard Yangzi Mitsui Shipbuilding with Yangzijiang Shipbuilding Group. In 2022, with Mitsui E&S Shipbuilding officially becoming a subsidiary of Changshi Shipbuilding, Changshi Group was able to participate in the operation of Yangzi Mitsui Shipbuilding, further deepening its cooperation with Yangzijiang Shipbuilding.
After completing the anti-monopoly approval procedures, Changshi Group is expected to complete the capital increase of Zhoushan Changshi Shipbuilding around May this year. Changshi Group will use the funds obtained from the capital increase for capital investment in the construction of new fuel ships.
Clarksons' data shows that as of now, Zhoushan Changshi Shipbuilding has a total order backlog of 52 vessels with approximately 4.03 million deadweight tons, including 4 5900TEU container ships and 48 medium and small bulk carriers, with delivery dates extending to 2029. Among them, 4 container ships and 6 81,200 deadweight ton bulk carriers are methanol dual-fuel green vessels.