Austal enters ship-building JV in China

Company News

by David Chau

Austal Limited (ASX:ASB) will design and build high-speed passenger ferries to service domestic routes in China.

The company will perform these works as part of a joint venture that it entered yesterday with the Guangdong Jianglong Shipbuilding Company.

The joint venture will be called the Aulong Shipbuilding Co Ltd, and Austal will have a 40% stake in it.

Austal says the Chinese government mandates a maximum operating life of 25 years for commercial high speed ferries. Therefore, ferries built by Austal and other manufacturers will need to be replaced progressively over the next few years.

Austal reported a net profit of $16.8 million at 31 December 2015.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?