According to foreign media reports, product tanker giant Scorpio Tankers is collaborating with Chinese shipowner and shipbuilding veteran Ren Yuanlin on a series of very large crude carrier (VLCC) newbuilding projects currently under construction in China.

In its second-quarter report released on July 30, Scorpio Tankers disclosed that it has agreed to acquire a minority stake of no more than 15% in a joint venture. The joint venture has contracted to build eight VLCCs equipped with scrubbers, scheduled for delivery by 2030.

Shipbroking and market sources confirmed that Ren Yuanlin is the partner in the joint venture. Yangzijiang Maritime Development, a Singapore-listed company controlled by Ren Yuanlin, disclosed last April that it had invested in eight 319,000-dwt VLCCs to be built by an unnamed major Chinese shipyard.

During Scorpio Tankers' earnings conference call, the company's Chief Executive Officer and Director Emanuele Lauro told investors that the partner is the ultimate beneficial owner of China's largest private shipyard, though he did not name the yard directly.

"We have had a cooperative relationship with this gentleman for many years," Lauro said, adding that the opportunity for this VLCC investment arose because "at that time, he was looking for partners in the shipping sector—and beyond—to operate the vessels after delivery."

Lauro explained that the investment reflects the company's confidence in the VLCC segment and its strategic intention to increase exposure to that market. He noted that Scorpio had previously invested in DHT Holdings and, after exiting that position, ordered two VLCCs at Hanwha Ocean, scheduled for delivery in 2028.

"For us, this joint venture is a good supplement and carries strategic ingenuity," Lauro concluded.

Currently, Scorpio Tankers owns a fleet of 74 product tankers. In addition, the company has signed or reached letters of intent for orders including six MR tankers, six LR2 tankers, and two VLCCs.

The shipyard founded by Ren Yuanlin, Yangzijiang Shipbuilding, is one of China's largest private shipbuilding enterprises. Since stepping down as chairman in 2020, Ren Yuanlin has served as honorary chairman, while his son Ren Letian has taken over the helm of the company.

Ren Yuanlin currently serves as Executive Chairman and Chief Executive Officer of Yangzijiang Maritime. The company was spun off from Yangzijiang Financial Holdings, a leading investment management firm backed by Yangzijiang Shipbuilding.

Yangzijiang Maritime has been particularly active in newbuilding activities in recent months. In an announcement released at the end of April, the company stated that it has a fleet of 105 vessels, including 53 under construction. Its main businesses cover maritime operations, cash management, and other non-maritime investments.