18/08/2016 - 14:08

Austal JV wins $10m ferry contract

18/08/2016 - 14:08

Bookmark

Save articles for future reference.

A recently established joint venture comprising local shipbuilder Austal has won a $10 million contract to build a ferry for a Chinese operator.

Austal JV wins $10m ferry contract
An artist's impression of the 42-metre ferry the joint venture will build for the Chinese client.

A recently established joint venture comprising local shipbuilder Austal has won a $10 million contract to build a ferry for a Chinese operator.

The JV, formed between Austal and China-based Guangdong Jianglong Shipbuilding Company in June, will design and build a 42-metre high-speed aluminium ferry for Chinese mainland operator Blue Sea Jet, with work to begin in October and take a year to complete.

Henderson-based Austal holds a 40 per cent stake in the JV, named Aulong Shipbuilding Company.

“To win our first vessel to be built in China within weeks of setting up the joint venture is a great testament to Austal and our joint venture partner, Jianglong Shipbuilding,” Austal chief executive David Singleton said.

“This is another export win for an Australian designed vessel in a competitive market and clearly validates both the joint venture and the decision to build in China.

“With an in-country solution utilising Australian design and technology and a proven local shipbuilder, we can cost-effectively pursue more opportunities and expand our market share in mainland China.

“Set-up costs and general, non-recurring expenditure required to deliver this first contract mean this vessel, whilst strategically important in a huge market, will not contribute to overall group earnings and will require some modest capital expenditure by Aulong Shipbuilding.”

Austal shares were 1 per cent higher to $1.17 each at the close of trade.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options