Yangzijiang Shipbuilding said on Monday that it entered a joint venture with Mitsui & Co. to establish a company in Panama to combine it shipbuilding expertise with the Japanese company’s access to ship owners.
The joint venture company will have an initial registered share capital of US$13.2 million, with each company investing 50 percent of that amount for a 50 percent stake, it said in a filing to SGX after the market close on Monday.
“The proposed establishment of the joint venture company with Mitsui is in line with the strategies and of the commercial interests of the group to take advantage of its competency in shipbuilding, and leverage on the privileged access of Mitsui to ship owners together with its extensive experience in ship-owning, chartering and sale & purchase of vessels,” Yangzijiang said in the statement.
“The new joint venture company is aimed to satisfy the diversified needs of our global customers through delivery of top-notch quality and
performance vessels,” it added.
Yangzijiang said the joint venture would be funded through internal resources and wasn’t expected to have a significant impact on earnings per share and net tangible assets per share for the current financial year.