Yangzijiang Shipbuilding is gearing up for its entry into the crude tanker space.

The Singapore-listed yard, which has never constructed a large crude tanker before, is going to complete a half-built suezmax that has been “sunbathing” in a dry dock in China for more than three years.

A source familiar with Yangzijiang confirms the shipyard’s move into the suezmax tanker sector, saying the “project” would help the Chinese shipbuilder to gain entry and experience in constructing large crude carriers.

Various shipbuilding sources say Yangzijiang has spent around $10m to take over the half-built, 157,000-dwt tanker newbuilding that was dry-docked at Jiangsu Rongsheng Heavy Industries.

The vessel was ordered by John Fredriksen’s Frontline 2012 seven years ago at a reported price just over $60m. Rongsheng stopped building the tanker when the yard group suffered financial problems.

Shipbuilding players say Yangzijiang needs to spend between $25m and $30m in purchasing equipment for the suezmax, as Rongsheng has only built the vessel’s hull.

They estimate the total cost that Yangzijiang will incur in completing the crude tanker will be just under $40m. Yangzijiang has set a target to complete the ship by early 2019.

“Once Yangzijiang completes building the suezmax tanker, it will put it up for sale,” said one shipbuilding source. “If Yangzijiang carries out a decent paint job on the tanker, it could still make a profit from the sale. There is always a market for large tankers.”

It is not the first time Yangzijiang acquired half-complete ships from compatriot shipbuilders.

Nantong purchase

Early this year, the shipbuilder bought collapsed Nantong Mingde Heavy Industry’s half-built, gearless 31,200-dwt multipurpose vessel (MPP) for CNY 96m ($13.96m). It finished building the ship and resold it to Algoma for around $20m.

Yangzijiang is widely known for building containerships and bulk carriers. In March, the yard made a mark on its shipbuilding history when it delivered its first-ever gas carriers — the 27,000-cbm LNG/ethane multigas carriers JS Ineos Invention and JS Ineos Intuition — for Evergas.

Besides the large tanker segment, Yangzijiang is also keen to get into the LNG sector.