Yangzijiang and Tsuneishi Expand Chinese Shipbuilding with New JV

 

One of Japan’s leading shipbuilding groups, Tsuneishi, and China’s Yangzijiang Shipbuilding are deepening their Chinese shipbuilding joint venture with Yangzijiang acquiring 34 percent of the operation based in Zhoushan. It comes as China has been struggling to expand capacity in the shipbuilding to keep up with demand and the Japanese companies are facing stiff competition.

Yangzijiang, which is one of the largest non-state-owned shipbuilding companies in China has been working with the Japanese since they launched the joint venture shipbuilding operation in 2019. The operation was set up with Mitsui E&S Shipbuilding which later became a subsidiary of Tsuneishi in 2022.

Under the terms of the agreement, the Chinese company is acquiring a 34 percent equity share of the joint venture company. It will pay approximately $153 million in cash for its shares. The companies said the agreement will strengthen the operation. They plan on expanding the group’s research and development, shipbuilding, and supply chain capabilities.

Tsuneishi Zhoushan is focused on private-sector, commercial shipbuilding. The yard has two shipbuilding berths and one building dock. Its focus is on 30,000 to 100,000 dwt bulk carriers. It also builds containerships, product tankers, and tug boats.

The new joint venture they report will strengthen the working relationship between the two companies, increase capacity, and enhance its competitive position. It will become an associated company of Yangzijiang.