YangZijiang

Ship Breaking/YangZijiang: The ship breaking industry has witnessed an increase in the supply of ships to be scrapped due to the global shipping downturn coupled with weak macro economic head winds since 2009, ICRA said in a report. Also, the less stringent regulations related to environment and human health hazards has also aided to the growth of this industry. With the outlook on international shipping freight rates being subdued over the near to medium term and large tonnage expected to come on stream post 2012, the ship breaking industry is expected to continue witnessing a steady supply of vessels for demolition over the medium term, the report said. We note that ship breaking rev contributions for Yangzijiang still remains an insigifnicant portion for the grp’s rev, however grp has plans to Gradually increase its production capacity from 200,000 LDT to 600,000 LDT over the next 3 yrs.