Yangzijiang inks new container feeder contract worth 392m yuan

Sharanya Pillai

Published Thu, May 28, 2020 · 09:51 AM

YANGZIJIANG Shipbuilding has clinched a contract to build four 1,000-TEU container feeders worth a total of 392 million yuan (S$77.8 million), the mainboard-listed company announced in a bourse filing on Thursday.

The orders for the four feeders, at 98 million yuan each, came from the Zhejiang Seaport Shipping Company. The design of the feeders will take into consideration the geographic conditions of several major ports in China's Zhejiang province, Yangzijiang said in its filing. The feeders have a maximum loading capacity of 15,000 tons, reducing fuel consumption per unit.

Ren Letian, chairman and chief executive of Yangzijiang, said the company is making "encouraging progress" amid the market uncertainties arising from Covid-19. The latest contract will expand Yangzijiang's base of Chinese state-owned enterprise customers, he added.

"The feeder market is a unique niche market, where the demand in China is relatively more resilient. I am confident that we will deliver the vessels of top-notch design and quality to the customer, in return for their trust and support," he said.

Shares of Yangzijiang closed at S$0.935 on Thursday, down by S$0.01 or 1.06 per cent.