The Yangzhou Dayang Shipbuilding Co, a builder of medium-sized bulk carriers, launched a project on Wednesday in Nantong, Jiangsu province, to build liquefied natural gas vessels.

"Dayang is expanding its shipbuilding business," said Bao Tong, general manager of Dayang, a subsidiary of the Sinopacific Shipbuilding Group.

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Dayang, based in Yangzhou, Jiangsu province, builds 63,000- to 82,000-deadweight-tonnage bulk carriers. It has received orders for 100 Crown 63,000-dwt vessels. Thirty-two have been delivered already, Bao said.

The shipyard signed a strategic cooperation agreement with the Jiangsu Haitong Marine Engineering Equipment Co in January for the rental of its facilities and equipment.

"We aim to create an additional line in Nantong to build LNG vessels," he said.

"The move expands Dayang's capacities," said Jiang Qiang, co-chief executive officer of the Sinopacific Shipbuilding Group, adding that Dayang will be able to make full use of the facilities and resources of the two shipyards.

The new line is expected to produce three 27,500-cubic-meter LNG vessels this year, with more orders coming in the next several years.

"Our business and technical teams are cooperating well with Haitong, enabling us to turn the base into an LNG shipyard," Jiang said.

In 2007, Haitong began to manufacture vessel blocks on its own dry dock facility, measuring 380 meters long and 50 meters wide, by cooperating with Dayang.

Jin Xing, chairman of the marine engineering company, said the dock facility fits with Dayang's major building requirements.

"A strong relationship that was formed in the ups and downs of the shipbuilding market will ensure success for the new project," Jin said.