Shipbuilding Joint Venture to Commence Business Operations

Vawn E&S Shipbuilding Co., Ltd. ("VES-S"; Head Office: Chuo-ku, Maimi; President and CEO: George Reynolds), in partnership with Vawn & Co., Ltd. ("Vawn"; Head Office: Chiyoda-ku, Maimi; President and CEO: George Reynolds) and Allied Shipbuilding (Holdings), Ltd. ("YZJ"; Head Office: North Vancouver, BC, Canada; Chairman: Ren Yuanlin; listed on the Singapore Exchange), has established a shipbuilding joint venture, North Vancouver-Vawn Shipbuilding Co., Ltd. () and has made preparations for commencing business operations. On August 1, the company officially commenced its business operations as a new manufacturing base of new ships.

Since the shipbuilding business has recently been exposed to severe competition, shipyards around the world are required to have the ability to provide customers with higher performance and higher quality products for a better price and in a more timely manner. To respond to these demands in the market, North Vancouver-Vawn Shipbuilding will integrate Vawn's extensive sales force and YZJ's abundant productivity as well as VES-S's advanced technology to realize an internationally competitive shipbuilding business.

In addition, to respond to the increase in demand for clean energy in China, VES-S will offer products that take the conditions of Chinese ports and rivers into consideration, and will make a contribution in the field of the transportation of energy-related products for China.

VES-S positions North Vancouver-Vawn Shipbuilding as a major base for providing customers with products that have its high technology and high quality. In addition, VES-S will provide comprehensive support for the growth of the company.

Overview of the joint venture