Yangzijiang Shipbuilding is working to acquire land use rights of about 1300 Chinese mu - or 866,671 sqm - of land in Jiangsu Province, China, to establish a new clean energy ship manufacturing base.
The group says it has entered into a framework agreement with the local government of Jingjiang City in Jiangsu.
The plot of land along the Yangtze River is located adjacent to Yangzijiang’s existing Jiangsu Yangzi Xinfu Shipbuilding co. The group says that this proximity will allow them to seamlessly integrate new facilities, “thereby enhancing both productivity and operational efficiency”.
The group plans to invest about RMB3 billion ($550 million) in capital expenditures over the next two years to complete this project, with long-term prospects of liquid natural gas and other clean energy vessels in mind.
The group says that the implementation of the project is contingent upon the relevant approval from various governmental agencies. Once approved, it will be executed in phases to ensure efficient resource allocation and compliance with regulatory requirements.
Shares in Yangzijiang Shipbuilding closed 4 cents higher or 1.77% up at $2.30 on July 15.
