China: COSCO Bags USD 190 Mln Contract for Seven Bulk Carriers

February 28, 2012

COSCO (Guangdong) Shipyard Co., Ltd (a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd), has secured a contract from a European company to build a bulk carrier of 35,000 dwt. The vessel is scheduled for delivery in the first quarter of 2013. Separately, COSCO (Zhoushan) Shipyard Co., Ltd (which is also a subsidiary of COSCO Shipyard Group Co., Ltd.) has secured two contracts and four option contracts from another European company to build a total of six units of 64,000 dwt bulk carriers with eco-friendly and fuel-efficient designs.

The two contracts will become effective following approval from the shipbuilder’s board of directors.

Delivery of the two vessels is expected to be in the first quarter and the second quarter of 2014 respectively. Upon the approval of the two contracts, the shipowner has the option to declare two of the option contracts to become effective within 12 months and the other two option contracts to become effective within 24 months. Delivery of the vessels under the option contracts is expected to take place within 18 months after the option contracts become effective.

The Company will make announcements as and when the shipbuilding contracts and/or the option contracts become effective. The total contract value for the above seven bulk carriers is over US$190 million.

COSCO Shipyard Group Co., Ltd, which is a subsidiary of China Ocean Shipping Company (COSCO), is a large enterprise groups, specializing in large vessels building, marine engineering’s construction and conversion, and providing with services in ship repairing and building sets in Dalian, Nantong, Zhoushan, Guangdong Province, Shanghai, Lian Yungang and other places. COSCO builds ship models including: 5000 series of barking space PCTC, 30,000 t Series of Heavy Lift Multi-Purpose ships, 57,000 DWT series of bulk carriers, 80,000 DWT bulk carriers, bulk carriers, and 92,500 tons carriers; its marine project include: the world’s first drilling production storage oil vessel, cylindrical rigs, self-drilling platform, semi-submersible offshore oil platforms etc.

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Shipbuilding Tribune Staff, February 28, 2012; Image: cosco-shipyard