Posted on October 28, 2024
Xingmin Intelligent Transportation Systems Group is to purchase a 30% stake of Zhejiang East Coast Shipbuilding from Yangfan Group as it expands the scope of its business.
Based on the company’s strategic development plans automotive wheel manufacturer Xingmin is going to invest in shipyards and acquire dockyard assets progressively to expand into shipbuilding market.
In the first move in this diversification Xingmin is acquiring a 30% stake in Zhejiang East Coast Shipbuilding from Yangfan Group
To stabilise the operation and profitability of Zhejiang East Coast Shipbuilding, Xingmin has entered into cooperation agreement with Wuhu Shipyard to jointly construct 37 vessels between 2025 and 2029. The vessels include eight 89,000dwt bulk carriers, one 7,000ceu PCTC, one 14,600 dwt heavy-lift vessel, six 38,000 dwt chemical tankers, four 49,000 dwt oil tankers, seven 50,00 0dwt tankers and ten 27,650 dwt multi-purpose vessels.
“Upon the completion of share purchase, the company will conduct shipbuilding business, which will further improve the company’s operation performance and profit growth,” said Xingmin.
Located at Zhoushan, Zhejiang province, Zhejiang East Coast Shipbuilding is able to construct vessels up to 200,000 tonnes-class. Its annual shipbuilding capacity can exceed 1 million dwt.
A rebound in the shipbuilding industry after many years in the doldrums has seen the reactivation of moribund yards in China as well as expansion by existing players.