Yangzijiang turns from shipbuilding to shipbreaking:

Nanjing: Yangzijiang Shipbuilding, a Chinese privately-owned shipbuilder, sets sail to become a very significant shipbreaker. US$38 million will be invested by the Yangzijiang group in a shipbreaking venture that will have the capacity to scrap up to 15 VLCCs a year.

Singapore listed Yangzijiang is taking an 80% stake in Jiangsu Huayuan Metal Processing whose subsidiaries include the Jingjiang City Dunfeng Ship Dismantle Co., which is one of the few qualified and environmentally friendly ship scrapping companies in China.

Previously, Yangzijiang had an indirect 20% stake in the scrapping corporation which now becomes wholly owned subsidiaries of the Jiangsu shipbuilder.

The diversification into shipbreaking and scrap metal trading provides a steel hedging strategy to complement Yangzijiang shipbuilding business and contribute to a sustainable growth in earnings.

The move into scrapping follows Yangzijiang's recent diversification into the rig and offshore vessel building and repair business.

Source: Marine News, China. 24 December 2011

http://www.marine-news-china.com/china-news/shipbuilding/item/465-yangzijiang-turns-from-shipbuilding-to-ship-breaking.html